Updated: Sep 6, 2020
This article applies to both new launch projects and resale properties.
One of the common fears that friends and clients bring up to me is that they aren't confident to buy a new launch property because they lack faith in the end product.
In a new launch, we can't see the quality of fittings and construction, we can't feel whether the environment will be peaceful and well ventilated and that all compounds our fear of the unknowns."
Whereas, in a resale property, although it is older, you get to see, touch and feel almost everything and have more faith in your decision.
Yes, it has happened where buyers end up being thoroughly upset by the overwhelming defects and quality of their new property upon getting the Temporary Occupation Permit (TOP).
Although there are few cases, one is enough to put a buyer off property investments for a long time to come.
Take for example:
Kingsford Waterbay and Hillview Peak developed by Kingsford Developments and Construction, a new player in Singapore's real estate development.
Warning bells started ringing with the 2 safety breaches in 2017 where the developer was fined and construction suspended.
Following that, buyers of the completed Hillview Peak and Kingsford Waterbay came out on social media to speak about their dismay on the quality, which resulted in a mediation session between owners, developer and a Member of Parliament, and a no-sale licence for Kingsford's next project - Normanton Park.
Or worst, where the developer fails to complete their projects and buyers and their savings get stuck in limbo - in the case of Sycamore Tree and Laurel Tree by Astoria Developments, the first cases of developers going bust since the Asian Financial Crisis in 1997.
The stress, injustice and opportunity costs of this experience is almost certain to scare many of them off future new launch property investments.