New builds vs existing properties in London – What should Singapore investors choose?

As a Singapore investor, buying property in London is not just picking a postcode. You are making an extremely strategic investment. One of the most important decisions you will face is whether a new build is better than an existing property.

The answer is that both offer their own set of advantages as well as risks. The question here shouldn’t be which is better; it’s what fits your objectives.

1. Payment structure & entry price

New builds:

Typically come at a premium. Remember, with a new build, you are paying for cutting-edge architecture, brand-new infrastructure and, in most cases, premium residents’ amenities. Most developers understand their target market; hence, they often offer incentives like furniture packs or stamp duty contributions to sweeten the deal.

Structure:

A 10% deposit on exchange, with the balance amount due at completion. This can be divided across 12-24 months out, depending on the development.

Tip: For buyers aiming to spread capital deployment, delayed payment can be a strategic advantage

Existing properties:

Older properties are often priced more competitively and situated in already-established London neighbourhoods. But the trade-off is immediate full payment on competition as well as the potential for renovation costs down the line.

As a Singapore investor in London, if you are willing to refurbish or add value, this option opens up solid potential – but it’s not passive.

2. Maintenance & management

New Builds:

With most new builds, you will be covered by warranties, usually 10 years under the NHBC scheme. The maintenance, too, is quite minimal for the first several years. As an overseas landlord, it’s understandable that you’d want to opt for a low-hassle asset.

Existing properties:

Older properties in London often come with a charm; however, they may bring in potential hassles like aged plumbing, outdated electrics or inefficient insulation. It’s ideal if you factor in these expenses within your budget from day one.

On the flip side, high-quality renovations can dramatically improve rental appeal and boost long-term value.

3. Tenant appeal & rental demand

New Builds:

Tenants in London, especially working professionals and students, are increasingly drawn to new builds. This is because they can access luxurious amenities such as onsite gyms, concierge services, co-working lounges and energy-efficient appliances.

For landlords, this advantage translates into faster lets, higher rental yields and reduced void periods.

Existing properties:

Older homes tend to perform well in London’s competitive property landscape. However, the houses in Zones 1 and 2 and near transport links or close to top universities tend to perform better than the ones on the outskirts. Another feature that draws attention within period properties is large room sizes.

4. Capital growth

New Builds:

For those seeking capital growth potential, it’s ideal to buy in early and ride the uplift as the regeneration area evolves. This is particularly true with areas such as Nine Elms, White City and the wider Thames Riverside belt.

Remember: Capital growth often depends on location and timing. Avoid overpaying in a saturated market.

Existing properties:

Older stock is often a finite asset, especially in tight supply areas. The right renovation strategy can boost the scope of value appreciation, especially in heritage neighbourhoods or gentrifying pockets of London.

The best move for a Singapore investor

• If you are looking for high rental yields and low involvement, choose new build properties
• If you wish to add value and play the long game, considering existing properties is ideal
• If you prefer a clean and predictable asset, new build gives you that advantage
• If you’d like a more comfortable way of managing and trusting a local property manager, existing property pays off well
• If you need a turnkey solution that can be let instantly, lock in a completed existing stock
• If you can accommodate waiting for 12-24 months for handover while locking in today’s prices, new build property is a viable solution for you
• If your exit strategy is to hold for five to ten years, both types of properties work; however, new builds in growth zones, in most cases, offer a better liquidity advantage

The verdict

Honestly, when choosing between an older property and a new one, there is no one-size-fits-all formula. However, there is always a right for you, based on your financials, long-term goals, budget.

Benham and Reeves Singapore is backed by over 65 years of experience in the London market and has been advising Singapore investors for over 15 years. Whether you seek a new apartment in the thriving Nine Elms or a classic Victorian townhouse in Islington, our experienced team of agents can help you buy with purpose and profit.

We recommend that you commit to the right asset, in the right area, at the right time. Contact our Singapore team today if you’re ready to invest smart in London.