Are Early Bird Discounts at New Launches Real Savings or Just Clever Marketing? (Updated 2026)
- Stuart Chng
- Dec 19
- 6 min read
Anecdotal stories I have come across point to a common revelation - that many whom have worked from home during circuit breaker, have found their homes either too small or not conducive for a prolonged work from home culture and are seeking options a little more favourable.
With this renewed market activity, agents are bracing for a busy period ahead and hoping to recover from the quieter months earlier in the year.
Among the many questions I receive from readers—and one that I recently discussed on CNA 93.8FM—this topic keeps coming up often enough to deserve a deeper explanation.
So let’s get into it.
Are Early Bird Discounts at New Launches Genuine, or Just a Gimmick?
Most buyers have heard developers or agents promote phrases like “early bird pricing” or “first-mover advantage” when marketing new launch projects.
Some of the usual sales claims include:
“Buy early and enjoy stronger capital appreciation.”
“Early buyers always get the lowest prices.”
“Developers earn the least during the launch phase.”
But are these statements actually true?
To answer that properly, we need to understand how developers price new launches and why early-bird discounts often serve a real purpose beyond marketing hype. Developers aren’t just chasing profits—they’re also managing deadlines, risks, and regulatory pressures.
Why Developers Use Early-Bird Pricing
While developers aim to maximise profits, they operate under strict timelines. In Singapore, projects must generally be fully sold within five years of land acquisition to avoid hefty Additional Buyer’s Stamp Duty (ABSD). There are also Qualifying Certificate (QC) deadlines after TOP to discourage land hoarding.
Because of these constraints, developers rely on a structured pricing strategy to balance:
Profit margins
Market demand
Time pressure
Early-bird pricing is one of the tools they use to manage this balance.
How New Launch Pricing Typically Works
A new launch usually goes through several pricing stages:
Initial launch (Phase 1)
Middle phases (Phase 2 and 3)
TOP phase (when keys are collected)
Let’s break this down.
Phase 1: The Main Launch
About two weeks before official launch, developers usually hold previews to assess buyer interest.
Based on demand, they decide where to price the project within an acceptable range.
In many cases, developers apply a loss-leader approach—not selling at a loss, but accepting slimmer margins to drive early sales momentum.
Ideally, the project achieves a healthy but controlled sell-through rate—often around 30–40%.
This generates positive publicity while leaving room for price increases later.
If demand is too strong, prices can rise quickly.
A well-known example is Park Place Residences, which sold around 50% of its units on the first day. Sales were paused, and prices were later raised by roughly 10–15% in the next phase.
Early buyers benefited from noticeable capital appreciation within a short timeframe.
Phase 1 buyers were very pleased to have made size-able capital gains within the span of a year as you would see from the the phase 1 and 2 launch prices highlighted in different colours.
During Phase 2, 149 units were sold over the weekend and by Sunday evening, Park Place was 84% sold out with only 70 units of mostly larger sized units left.
Phase 2 and Beyond: Averaging Up
After early units are sold at thinner margins, developers typically raise prices or reduce discounts in subsequent phases to improve overall profitability.
This approach rewards early supporters and reinforces the idea of first-mover advantage—provided demand remains strong.
Is Capital Appreciation In New Launches Always Guaranteed? Are Early Buyers Always Guaranteed Profits?
Absolutely not.
Just like resale properties, new launches are not risk-free. While uncommon, there have been cases where developers later offered additional discounts, such as at 38 Jervois, 8 St Thomas, and One Pearl Bank.
These situations usually arise during periods of economic uncertainty, when developers need to manage cash flow and maintain solvency.
While such moves may disadvantage early buyers in the short term, losses are typically unrealised unless owners sell prematurely. Rental income and longer holding periods often help cushion the impact.
A quick caution: when developers offer guaranteed returns, rental guarantees, or buyback schemes—locally or overseas—it’s worth being extra careful. Such incentives often signal weaker organic demand.
It is important for us to remember that developers are for-profit organisations that need to manage their liquidity risks to stay solvent and preserve jobs. When market visibility is murky, they need to do what they need to do to stay afloat.
The bright side though, is that losses are not realised and owners can usually hold out till profitability or till rental collected offsets any capital losses.
** A side note on property investment guarantees
When rental, buy back or any other form of guarantees are made by developers whether locally or abroad, I put on my cynical hat as it means that by its own merits, a property does not attract sufficient suitors. So just be aware when you encounter such deals.What Happens to Prices After TOP?
By the time a project reaches TOP, most units are usually sold.
Prices at this stage are often the highest after several rounds of increases.
At the same time, resale listings begin to emerge as early buyers look to realise gains.
Having held their units for years—and absorbed stamp duties, interest costs, and opportunity costs—most sellers aim for a profitable exit.
Because of natural loss aversion, owners are generally reluctant to sell at a loss and may choose to rent instead. This behaviour helps explain why the majority of new launch resales tend to be profitable.
Take for example Botanique at Bartley, Coco Palms and Commonwealth Towers in the slides below.
You would commonly see several profitable ones, and few or no unprofitable ones as a result of this human tendency based price resistance.
Data consistently shows that over 90% of new launch owners eventually sell at a gain.
Most New Condos Were Resold With Profits
Regional Performance Matters
Historically, projects in the Outside Central Region (OCR) and Rest of Central Region (RCR) have shown higher profitability rates compared to the Core Central Region (CCR).
One reason is practicality: many buyers in OCR and RCR need immediate housing after selling an HDB or due to family needs, so they turn to newly TOP projects rather than waiting years for a brand-new launch.
So, Should Early-Bird Discounts Matter to You?
Being an early buyer can work in your favour—if you’ve done proper research and understand the developer’s track record.
Some developers are known to reintroduce discounts more quickly than others, which is something buyers should factor into their decision.
Early-bird pricing alone shouldn’t be the sole reason to invest, but when combined with sound fundamentals, it can provide a meaningful advantage.
While not every new launch guarantees success, understanding how pricing strategies work helps you see beyond sales pitches and make better-informed decisions.
Till then, stay safe and prudent when out shopping!
Need an opinion on your property investment plans, the best buys available or help marketing your properties?
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Stuart Chng, Executive Group District Director at Huttons, is a renowned leader and personality in the real estate industry.
He adores music and can play a few instruments decently without upsetting his neighbours. When not doing so, he enjoys pillow fighting with his son and coming up with silly puns which barely amuses his wife.
Professionally, he is a licensed real estate agent, an avid stocks, options and real estate investor, business owner, team leader, speaker and columnist for several property newsletters and blogs and is often quoted in media interviews on 938FM, Channel 8, PropertyReport, PropertyGuru and other publications.
Throughout his career, he has helped many clients grow their wealth through selecting great property investments and managing their portfolios actively. Read his clients' reviews here.
Stuart has also coached many top million dollar producing agents from different real estate agencies in Singapore. Read his agents' reviews here.
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