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A Sub-Sale or Brand New Property: Which Should You Choose?


A Sub-Sale or Brand New Property: Which Should You Choose?

The first question that pops in your mind as a homebuyer most likely will be should you purchase a sub-sale or new property?

When you’ve reached adulthood, you certainly would want to move out of your parents’ house and have a place you can finally call your own. Before you can make that major move from one place to another, there are many factors that you need to consider before purchasing your very first home.

Sub-sale properties are second-hand properties that you’ll be directly buying from the existing homeowner. On the other hand, a brand new property (sometimes known as under-construction) is a new property that has not been owned/stayed in by anyone before.

It is important to know the advantages and disadvantages of both of these property types before you can finally make a decision. Here are the differences between sub-sale and new properties.

Advantages of purchasing a new property

  • Warranty is provided

When you purchase a new property, it comes with a warranty offered by the developer according to the sales agreement. The developer should fix any defects in the house which does not follow the plan which has been promised in the SPA within the defect liability period which is 24 months after the date the buyer takes vacant possession.

Do remember that the developer has to offer a warranty for defects with a stipulated time frame as you as a buyer have a right to a brand-new house in good condition and quality. Check for any damage, defects and poor workmanship like leakages, wall cracks and loose doors. If you have any issues with the unit, just relay your dissatisfactions to the developer to get them repaired free of charge.

  • Easy access to information

Any new property will have a plethora of information available which makes it easy for interested homebuyers to know about the unit. You can get more information about the property by visiting the developer’s sales gallery or even view the show house.

  • Ability to choose

If you’re buying a new property, you have the flexibility in choosing the unit type, the direction of the unit and also the unit floor plan. Other than that, you are able to pick a unit that is close to the swimming pool or the corner lot unit if you are one of the early-bird buyers.

  • Comes with new fittings and amenities

A new property comes with fully or partially furnished new fittings for free provided by the developer. On top of that, you get to reap the benefits of having new and never-used-before amenities that are in tip-top condition in a new community.

  • Special rebates or offers are available

As there are many new projects in the market, developers are offering many special rebates or discounts/offers to attract prospective home buyers. You can take advantage of the offers such as stamp duty exemption, zero booking fees, zero down payment and others to get the best deal.

Disadvantages of purchasing a new property

  • Probability of the project being delayed or abandoned

Homebuyers of new properties have to be prepared to bear the risk of the developer abandoning or delaying the project due to uncertainties faced along the construction process.

  • Product not as advertised

There is always the probability that the final product may turn out differently than what was advertised on the website or brochure. People interested to purchase new properties have to accept that the unit may differ from what was shown from the show house gallery and building model.

  • Uncertainty over the surrounding development

Another aspect that buyers of newly launched properties will need to expect is the uncertainty that may come with the township’s planning.

New or different projects such as a high rise shopping mall or a new highway might be built in close proximity to your home. You might like the property because of the view or because of how quiet the neighborhood is but that may all change when other projects are sprouting up in your area.

  • Property not readily available

It will take some time before you will be able to move into your dream home when you are purchasing an under-construction property. It usually takes about 2 or 3 years for the property to be completed and ready to move in.

However, if the project is being delayed due to unforeseen circumstances that could lead to the waiting time to be even longer from 4 to 5 years. If you are looking to stay in your home in a couple of years, this might not be the best option.

  • Additional commitment

Purchasing a new property usually means that you are obligated to start your loan repayment when the structural framework of the development begins.

If you’re buying a high rise property, when the development reaches your floor, you will need to start making loan repayments. Thus, those who bought units on the lower floors will need to make repayments first before the ones who bought units on the higher floors.

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Advantages of purchasing Sub-sale Property

  • More affordable price

Since a sub-sale property is previously owned, the price of the property is comparatively lower than a brand new house. That is because of the aging factor of the house. It is important to do your due diligence and know the market value of the house so that you will be able to bargain the house price with the current homeowner and get the best possible price for the property.

  • Ready to move in within 2 to 3 months

If you’re looking for a place to stay as soon as possible, then a sub-sale property might be the best option that you have. You can move into the property within 2 to 3 months after the legal paperwork is finalised. On top of that, you will not run the risk of delay in handover when it comes to a newly launched property.

  • Opportunity to inspect the property

Besides that, you have the opportunity to inspect the property for any wear and tear before actually purchasing it. Get a feel of what the property and neighbourhood are like, as you can physically visit the house and observe the surrounding environment. After visiting the house, you can estimate the costs it takes to repair and restore the property to the way you like and negotiate for a better selling price.

  • Mature and centralised location

With a sub-sale property, you have plenty of choices when it comes to the location of your home. If you are planning to buy in a mature and centralised location, you do not have to worry about the amenities, facilities as well as the accessibility to your new home as the neighbourhood will already be well-established.

Disadvantages of purchasing Sub-sale Property

  • Plenty of paperwork

The downside to purchasing a sub-sale property is that there is a lot of legal work and paperwork that goes into the property transfer and ownership process when compared to buying a brand new property. For first time home buyers, it might be a difficult journey as they have to undergo many processes that might stress them out.

  • Less information available

As opposed to a newly launched property, information about a sub-sale property might be challenging to get a hold of unless the homeowners are actively advertising their property on social media. Therefore, you need help from a good real estate agent to help you to procure the perfect property for you.

  • Warranty for defects not available after transferring ownership

Although you get to inspect the sub-sale property before deciding on purchasing, you need to be extra careful in examining the entire property because after you have transferred ownership, the warranty for defects will no longer be available. Before transferring the ownership, try to ask the current owner repairing work and if that’s not possible ask the owner to decrease the asking price to make up for the charges to repair any defects.


Now that you know more about the differences between new and sub-sale properties, you will be able to decide on a property that’s within your budget and requirements. If you’re searching for property for your own stay, a new property might be ideal to you however if what you’re looking for is a property located in a strategic location then a sub-sale property is the way to go.

Interested to buy a sub-sale or new property at this time but need assistance in making a decision? Leave your details below and a member of our professional team will reach you! 


Source: IQI Global Blog

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