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Resale vs New Launch

In 2026, the gap between New Launch and Resale isn't just about PSF—it's about Efficiency. With mortgage rates stabilized at a favorable 1.4%, the cost of debt has dropped significantly from the 2024 peak, yet the cost of waiting remains the upgrader's biggest hurdle.

AVG. NEW LAUNCH PSF

$2,650

Harmonized Area

AVG. RESALE PSF

$1,720

Standard Area (OCR)

The "Harmonization" Efficiency Gap

By 2026, the 2023 URA/LTA harmonization rules are the market standard.New Launch PSF reflects only usable floor area (no AC ledges or strata voids). While this transparency is good, it results in a higher entry PSF that many Resale units still "hide" in their older, less efficient floor plans.

Resale (Pre-2023 Rules)

You pay $1,700 PSF for 1000 sqft, but up to 7% is "dead space" like oversized AC ledges. Effective useable PSF is higher than it looks.

New Launch (2026 Rules)

You pay $2,650 PSF. Every square foot is internal living space. Maximum transparency, but significantly higher financial threshold.

Area Breakdown: Resale vs. 2026 New Launch

The 1.4% Mortgage Impact

Lower rates compared to 2024 significantly reduce the cost of holding debt.

Monthly Payment (Loan: $1.2M)

30Y Tenure
2024 (4.0%)
$5,728
2026 (1.4%)
$4,085

Monthly Difference

+$1,643 in savings

Annual Saving

$19,716

By 2026, the market has settled at 1.4%. While this is higher than the extreme sub-1% lows of the early 2020s, it allows Resale buyers to lock in immediate, sustainable monthly cashflow profiles.

The "Dead Money" Reality

With a 1.4% interest rate, Resale mortgage payments are heavily weighted toward principal reduction. In contrast, a 3.5-year wait for a New Launch results in massive rental outflow that yields zero equity.

$4,800
3.5y

Sunk Cost vs Resale Principal

$201,600

The "Rental Burn" is often forgotten. By the time a New Launch completes, a Resale owner has already converted ~$120k of debt into home equity.

2026 Equity Projection

Net worth comparison at 1.4% mortgage interest rate.

Resale (Immediate Equity)
New Launch (Rental Adjusted)

Choose Resale If...

  • You want to lock in a 1.4% rate on a full loan immediately to maximize principal reduction.
  • You need family space now and refuse to pay "dead money" to a landlord.
  • You value a lower entry price PSF ($1,700s) as a safety buffer.

Choose New Launch If...

  • You have free alternative accommodation (e.g., staying with parents).
  • You prioritize high-efficiency "Harmonized" layouts over pure square footage.
  • You prefer the progressive payment cashflow model over immediate full mortgage.