Introduction: Main difference between new project & subsale / resale market
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“Should I buy a subsale or brand-new property?”
In Malaysia, there’s a few ways for you to acquire property as a local residents. In a normal sales & purchase process which is securing new project from a property developer, purchasing from existing owner i.e. subsale/ resale/ secondary market, auction market & etc.
“abnormal” circumstances would be inheritance of family property, find sponsor from BossKu & etc.
New projects are properties that are currently being built or have yet to be constructed.
Subsale/resale properties are properties that have already been completed and are being sold by the current/ existing owner. Let’s take a closer look at the differences between the two.
Price/ cost
| New project | Subsale / resale |
| New projects tend to be priced higher than subsale/resale properties, this is because developers need to cover the costs of building the property, such as land acquisition, construction, legal fees, marketing & etc | On the other hand, subsale/resale properties are usually priced lower than new projects because the properties are completed and the owner is looking to sell. Some subsale/resale properties may come with additional benefits such as renovated interiors, which can add value to the property but some developers do offer renovation/ furnishing package as well for the new projects, so this part really “depends” |
| Legal fees usually covered. WANT TO KNOW HOW TO CALCULATE LEGAL FEES? COMMENT LEGAL FEES AND I WILL TEXT YOU THE EXCEL TABLE I MADE | No legal fees included, valuation fees needed as well. Agent fees, down payment, renovation cost, loan stamp duty, mot stamp duty |
| No agent fees | Sometimes it depends, Penang, Johor and 1 more state (I forgot), local practice is collecting from both side of purchaser & landlord as well. If you ask me is it legal? Of course it is not legal, for now. Personal opinion, KL is having much higher transaction and the landlord there offering higher percentage % of commission |
| Lower entry cost | – |
| Loan amount higher than resale, SOME PPL OK SOME PPL NOT OK, WANNA KNOW WHY LOAN AMOUNT HIGHER? SUBSCRIBE AND I WILL TELL YOU IN THE NEXT VIDEO | – |
| Overpromised / over-exaggerate | – |
| More choices if you buy early | Not many unit waiting for you to choose |
| Some is negotiable some is not negotiable, some developer negotiable but be careful your unit quality also “negotiable”-lah, those that use agents to visit and walk back into sales gallery ask for more discount, I will pray very hard and hope that your house won’t have leaking issue, no crack no quality issue as well. Sometimes it is good to have a responsible agents to follow things for you. If you really don’t like agent, direct go to developer, most of the price are the same. Subsale / resale also the same, it can be negotiable, some owner won’t even decrease price | |
Potential Risk
| New project | Subsale / resale |
| developer’s financial stability and the completion of the project. In some cases, developers may face financial difficulties that can cause delays or even abandonment of the project. Once abandoned = cry & financial lock up. | Hidden defect that you might not know |
Quality & Design
| New project | Subsale / resale |
| New projects usually offer a newer design & features, featuring the latest building materials and technologies. New and never-used-before facilities that are in good condition. What you hear, what you see now, is having a risk of what you get later might be difference | What you see is what you will get. Quality issue no worry, once you don’t like it, don’t buy. New project, you buy empty air, once you bought and later you don’t like it? Cry, wait, and sell. Subsale/resale properties, on the other hand, may have outdated designs and features that may not be as desirable to modern buyers such as Green Building Index (GBI). |
Warranty
| New project | Subsale / resale |
| It is good that some developers really playing their role and carry out defect rectification if there’s any issue. Some developers and projects got warranty like no warranty, drag until you cannot wait you repair yourself or they repair like sh*t as well | Some owners will do the defect for you some won’t, there’s no law stated / request owner must do for you.so everything based on negotiation, 一个愿打，一个愿挨,remember everything black and white, do not based on verbal. |
Experience
| New project | Subsale / resale |
| You cannot see, feel or experience until the moment you get the keys because the building is not yet completed. You don’t know who your neighbour is | You can visit, feel, touch the property (PUT SEXY EFFECT) and experience the environment. Like it? Buy. Don’t like it? Skip lo. You know who is your neighbour Information about the property may be hard to obtain if the property is quite old. Hence, you’ll need to enlist a really good agent to help you research and/or dig. |
Potential for customization
| New project | Subsale / resale |
| More freedom in having your own design & renovation but subsale/ resale you can also look for original units but could be quite limited | Slightly harder unless you are lucky to get original unit from the existing owners |
Completion date /Time
| New project | Subsale / resale |
| To cultivate a habit of monthly loan instalment Longer waiting period including construction time. Risk of late completion | Around 3 to 4 months’ time you can get the keys once your loan & legal S&P documents signed. In some cases you can even get the keys immediately, just need negotiate properly. |
Conclusion
In summary, new projects and subsale/resale properties offer different benefits and drawbacks for homebuyers in Malaysia. New projects offer modern designs, customization options, and potential for appreciation, but come with higher prices and longer completion times. Subsale/resale properties offer lower prices, established locations, and immediate occupancy, but may have outdated designs and potential hidden issues. It is important to consider your budget,
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2 Responses
we bought a lelong shop unit years back – later some one wanted to rent the unit but requesting owner to produce CF of the shop unit
unfortunately we dont seem to have such doc (the CF) –
how can we obtain the CF now ? from where ? pls advise – tqvm
hi Chris, apologize for the late reply, I am not sure what is the CF you mean, is it CCC ?