Properties has been proven as one of the most effective ways to grow asset wealth in Singapore. Singapore’s transformation in the past decades have contributed to the meteoric rise in our property prices, but when is the best time to capitalise? Today’s we’ll explore the various sales stages.
Sale by Developer
Developers bid for land to transform landscapes into brand new residences. At this stage, buyers are purchasing the concepts and ideas based on paper value. Without anything to show physically, prices are usually at its lowest. Taking into consideration that buyers are buying in at a certain risk before physical units are available.
Defined as the purchase of a unit from developers or from a subsequent purchaser before the issuance of the Certificate of Statutory Completion and the Subsidiary Strata Certificates of Title. Sounds a bit challenging to understand? In a nutshell, this basically refers to a sale process happening before the development completion (where a certificate is issued). It can happen from an owner who has bought the unit previously or directly from the developer (if there are leftover units for sale). This sales stage can range from the foundation of the building been laid to the erection of buildings with units ready for move-in. The entry price will be priced higher than the initial sales balloting phase.
The resale stage generally refers to any sale conducted after the issuance of the Certificate of Statutory Completion (COSC). Most buyers from the “Sale by Developer” stage will be seen flipping their units at this stage (generally after the 3 year TOP period), where they have a planned entry and exit to realise the fruit of their investments. Some owners will hold out their units, rent it out for a duration and sell it together with a tenant.
If you would like to find out more about entering & exiting the real estate market, my name is Jen Tan, don’t be afraid to pop me any questions! I would love to hear from you soon.