The Benefits and Challenges of Buying Resale Property Market
Resale Property Market: A Viable Alternative for Home Buyers
The resale property market is booming as home buyers look for completed or nearing-completion homes available for immediate occupancy. A need for more new developments, a lack of ready-to-move-in properties, and rising prices in major markets drive this trend.
According to a recent Real Estate Intelligence Service (REIS) report, the resale property market accounted for 45% of the total residential sales. In the first quarter of 2023, it is up from 35% in the same period last year. The report also stated that the average price of resale properties increased by 12% year-on-year. Compared to a 7% increase for new properties.
The report attributed the growth of the resale market to several factors, such as:
A shortage of new supply: The number of new residential launches declined by 15% year-on-year in the first quarter of 2023. As developers faced challenges such as land acquisition, regulatory approvals, and construction delays.
A preference for ready homes: Many buyers prefer to buy complete or near-complete homes. That offered immediate possession rather than waiting years for new projects to be complete.
A price advantage: Resale properties offered a price advantage over new properties. Especially in prime locations with high land prices and limited new supply.
The report also highlighted some of the benefits of buying resale properties, such as:
A wider choice: Resale properties offer a more comprehensive range of options. In terms of location, size, design, and amenities compared to new properties that were often standardized and uniform.
A lower risk: Resale properties eliminated the risk of project delays, quality issues, or legal disputes. Which often affect new properties.
A better negotiation: Resale properties allowed buyers to negotiate directly with sellers. Rather than dealing with intermediaries such as brokers or agents.
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The report concluded that the resale property market would continue to grow in the coming years. As demand outpaced supply and prices remained competitive. It also suggested that buyers do their due diligence before buying resale properties. Such as verifying the title, checking the condition, and inspecting the documents.
The resale property market is a viable alternative for home buyers looking for ready homes at affordable prices. It offers a variety of options, lower risk, and better negotiation. However, buyers should also be careful before making their purchase decision.
