New launch prices are too high and yet people are still running towards it
Discover why everyone rushed into new launches in 2025 and how interest rates dropping & rising land bid prices mean for your upgrade journey in 2026.
New launch prices are too high and yet people are still running towards it
Discover why everyone rushed into new launches in 2025 and how interest rates dropping & rising land bid prices mean for your upgrade journey in 2026.
FEELING LIKE YOU CAN'T FIND THE RIGHT DEAL IN TODAY'S MARKET?
I hear many homeowners asking:
"Are new launch prices overpriced?"
"Should I wait for resale units to drop?"
"If I upgrade now, am I overpaying?"
"Is this year a better entry point? Or is there ever a good time?"
Let's break down the numbers so you can make decisions based on data
NOT GUESSWORK!
The move to upgrade from a HDB to buy two properties under both of me and my spouse’s names was a tough one. We had to ensure that we had sufficient income and funds to be able to secure two properties safely. With Claire’s proper framework, we managed to secure 1 for an objective of own-stay in the district that is close to our family and the other, a resale EC that eventually reaped returns of 500K over 4 years, all without the stress of not being able to rent out or to sell because both the rental & the sale were secured at a short period of time. Today, the property that we bought for own-stay is still running on a 25% capital gain. All of these will eventually be able to serve us well in our retirement & we are so thankful. Thank you for guiding us through - we truly appreciate it.
-K&J
Why New Launch Prices Are Still Climbing
This year's launches will be priced even higher than last year, and next year will be priced higher than this year and the cycle continues!! All these are driven by:
- Rising government land bid prices - 20% higher
- Developer construction and material cost increases
- Lower supply of good sites
When land is bought higher, future selling prices must increase, meaning today’s buyers enter at a lower baseline.
The Price Gap Between Resale & New Launch Has Narrowed
And why new performed better in 2025
Let's break it down even further and clearly:
- Many new launches in 2025 were only 10% or less above comparable resale units.
- Buyers get a new 99-year lease, better layouts, and stronger capital appreciation potential.
- In some districts, resale units may actually be overvalued relative to remaining lease and condition.
How the Clear Value Advantage Secure (CVAS™) Method can Help You Choose the Right Property Today
1. Access Your Profile & Goals
A home to live in and a property to invest in should be approached very differently. This step helps avoid common mistakes like paying too much for a “nice” unit that doesn’t perform especially if you are looking at resale, paying the highest psf in the development, etc.
We align on:
- Stay vs investment (or a mix of both)
- Holding period and exit plan
- Budget comfort, not just maximum affordability
Outcome: Only look for properties that make sense for your goals.
2. Value & Advantage = Proper Risk Analysis
Same project. Same size. 1 floor level difference. Two different outcomes.
#11-08’s owner would have to at least cover his costs (mortgage, stamp duties) to let go of the property at 3.7M since he bought it at 3.64M while #10-08, who bought 20% cheaper can afford to let go of the property at a lower price over the same time period - making him more profits.
As a buyer, how do we then spot the units like #10-08 to get the best returns possible?
Other factors include understanding:
- Projects transacting below comparable developments
- Units with strong attributes (layout, stack, facing, size) that are overlooked
- Areas where future demand or transformation is not fully priced in to give you more upside, and downside protection.
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