If you are looking to purchase property, the choice between brand new or pre-owned will have come up as one of your considerations, if it hasn’t already. When deciding between primary versus secondary markets for real estate, either option has its own benefits, and both are certainly worth exploring so that you can maximize your property search. In this article, we list down the main differences between the two, the benefits of either option, and how to ultimately decide on which market to source your choice property from
What is the Primary Market
Properties sold by a developer to end-users constitute the primary market. These are brand-new units that you can purchase during the pre-selling period or as a ready-for-occupancy (RFO) unit in the case of a newly-completed development. The buyer of a property purchased in the primary market then becomes its first owner.
Benefits of purchasing in the primary market
When you decide to buy from the primary market and pay for your unit in cash, developers may offer a discount. Furthermore, purchasing during the earliest period of pre-selling means you get to take advantage of introductory prices. Not to mention, you enjoy first dibs on a unit that aligns with your must-haves such as having a particular view or floor.
If you are an investor looking to buy several smaller units, buying brand new, and early on during the pre-selling period, also means more options to choose from in the current inventory.
Take note, however, that even pre-selling prices are subject to escalation–and this will continue to appreciate over time. This is especially true if the property is located in a key business district or economic zone, which impacts value over time.
Once your brand new unit is turned over, the benefit of a brand new unit is it will likely be in good condition. That said, it is still good practice to inspect the property, new or otherwise, before moving in.
Finally, another factor worth considering when it comes to purchasing in the primary market is the infrastructure surrounding it. Newer communities are usually planned with the major infrastructure developments in mind. For example, according to Collier’s Philippines’ 2022 Outlook Study, Rockwell at Nepo Center is among a new crop of townships that are rising in the North, which will benefit from major projects such as the NLEX-SLEX connector, as well as the Bulacan International Airport and Clark International Airport.
What is the Secondary Market?
Properties under the secondary market are pre-owned and have either been put up for sale by the owner, or for rent. Much like buying a car in the secondary auto market, the condition of a pre-owned unit may vary.
Furthermore, owners have various reasons for selling their property. They may be liquidating it to free up their funds. They may require a bigger space to accommodate a growing household; or they may be downsizing as in the case of empty nesters. Or they may be relocating.
As for owners renting out their units, the primary motivation would be a return on investment by way of rental income.
Benefits of purchasing in the primary market
Depending on how old or well-maintained a property is, it will have seen different levels of wear and tear. On one end of the spectrum, you may encounter fixer-uppers rife with paint jobs, water damage, leaks, and broken windows to name a few. Whatever the state of the property, if it is offered “as is where is,” this gives leverage to the prospect buyer to negotiate on the selling price, especially if a considerable amount would have to be invested for repairs.
On the other hand, pre-owned properties may also come with renovation work. For example, investors who are into property flipping may fix up a unit to increase its profit margin.
That said, buying pre-owned property means its selling price would have already been subject to appreciation. This is not necessarily a bad thing especially if you are interested in renting it out yourself. More so if the property is from a reputable developer; location is prime; and demand is high.
Primary vs. Secondary Market in Real Estate: Which One Should I Choose?
The choice to buy brand-new or pre-owned depends on your unique preferences, budget, as well as the current availability of properties that match your specific needs.
For example, if there is a unit type, say a three-bedroom unit, that you are eyeing in a specific development, and the inventory for this type of property has been exhausted, exploring the secondary market is your next best bet. Or if renovation is not an option then buying or renting a newly-refurbished space will be better suited for you.
Ultimately, it is not so much about the primary versus secondary market for real estate, as choosing the option that immediately fulfills your requirements.
Find the Right Unit at Rockwell Leasing and Secondary Sales
And to help streamline your search, find the right property for you at Rockwell Leasing and Secondary Sales. Curate your options with ease by comparing properties according to location, unit type, and price. You can also view a photo of the property, its inclusions, as well as available amenities. Whichever you choose, you can be assured of the distinct exclusivity, safety and security, convenience, and accessibility that underlines the signature Rockwell lifestyle.
Contact Rockwell Leasing and Secondary Sales today to learn more.