Imagine you bought a new-launch condo two or three years ago. The building is not quite done yet, but prices have climbed. Would you cash out now or hold on and wait for the unit to complete?

The sub-sale market has been one of the most talked-about topics in recent years, with profits hitting record averages in 2024. But since the SSD rules were tightened in 2025, sellers now need to be far more precise about timing, holding costs, and exit strategy.

What is a sub-sale?

When you buy a unit from a developer, but then you sell it before the Certificate of Statutory Completion (CSC) is issued, that's called a sub-sale. But, most people use the Temporary Occupation Permit (TOP) as an informal benchmark.

Essentially, with a sub-sale, you're selling a unit that you haven't lived in yet. The person buying from you takes on the remaining construction timeline, and you walk away with the profit (or loss).

Covid-19 was a strange time for everyone. In real estate, construction projects across Singapore got delayed by months or even years. Consequently, pent-up demand for homes shot up after 2020, causing private property prices to rise very quickly. Buyers who bought new launches between 2019 and 2021 suddenly saw their homes increase in value much faster than usual, with gains that would normally take many years to happen.

At the same time, many completed-unit owners were reluctant to sell because finding a replacement home was expensive. Selling high also meant buying high. This tightened the resale supply, which nudged buyers toward the sub-sale market.

As a result, sub-sale activities went up from 198 transactions in 2020 to 1,428 transactions in 2024, according to URA statistics. There have also been numerous reports claiming that a large majority of sub-sales have been profitable in recent years, at least before factoring in SSD.

With so many people making quick profits from sub-sales, the government eventually stepped in and tightened the SSD rules. Sure, it may feel restrictive or a bit frustrating for investors, but ultimately, this was meant to keep the property market stable in the long run.

So if you're thinking about doing a sub-sale in today's market, this is something you really need to factor into your calculations. The holding period is longer now, which will obviously affect your timeline. Don't forget that market conditions can change during that period too. So you need to consider your timing and exit strategy, much more than before.

Let me illustrate.

During the 2024 wave, sellers in the sub-sale market were widely reported to have made substantial profits. Let's assume your profit margin is $250,000.

On a $1.5 million unit, the old SSD rules meant you had to pay 8% tax if you sold in the second year. That's $120,000 gone, leaving you with $130,000 in profits. Not bad.

But, under the new rule, if you sell within two years, the SSD is 12%, which works out to $180,000. So you're only left with $70,000.

This goes to show that sub-sale only really works when your profit is comfortably higher than the SSD you need to pay. During the post-pandemic wave, many sellers could still make the numbers work because prices rose very quickly. But now that the market has cooled and SSD rules are stricter, the margins are much tighter.

Of course, this does not mean sub-sale is dead. Sub-sales are still happening, but the stakes are higher now. So the gain must be strong enough, the timeline must be clear, and the next move must justify the early exit. And despite the tighter rules and smaller margins, there are still a few reasons why some people choose to dabble in the sub-sale market.

1. Lock in gains

If you bought a new launch and it's already gone up quite a bit in value, you might be thinking of cashing out while the market is still doing well. Singapore's property market is generally quite stable, thanks to cooling measures and other government interventions. But during uncertain periods, people naturally get a bit more cautious. Things like the Middle East conflict or worries about the economy can affect market sentiment. So if the unit is already sitting on a decent profit, some owners may prefer to take the money off the table rather than wait and see what happens next.

2. No renovation costs or landlord headaches

When you sell through the sub-sale market, you're basically handing over the unit as-is. No renovation, no furnishing, no dealing with contractors or waiting months for carpentry, tiles, and appliances to be installed. That alone can save you tens to hundreds of thousands of dollars in renovation costs, plus four to six months of stress and delays.

And if your original plan was to rent the unit out after TOP, you no longer need to find tenants, manage the property, and deal with maintenance issues down the road.

3. Capital recycling

For investors, an early exit frees up capital to pursue other opportunities. Maybe you're already eyeing another property! In that case, selling on the sub-sale market could be a good decision.

1. Buyer confidence = bigger pool

Buyers purchasing an uncompleted unit accept construction risk and wait time, but not everyone wants that. Interest rates could change before completion, construction timelines may shift, and they still have to wait before moving in or collecting rent. Because of that, some buyers become more cautious with their budget.

After TOP, the property becomes a much more straightforward purchase. Buyers know exactly what they are getting, banks have the final valuation, and there is less uncertainty overall. That confidence can sometimes translate into stronger demand and better offers.

2. Rental income while you wait

If you're still figuring out your next move, there's no real rush to sell immediately after TOP. You can hold on to the unit and rent it out first while deciding on your next property investment. At least this way, the property is generating income instead of just sitting there. The rental can help offset your mortgage, maintenance fees, and other holding costs while you wait for the right time to sell.

3. You avoid competing with developer inventory

In some projects, developers may still have unsold units during the sub-sale phase. That makes things harder because buyers can simply compare your unit against a brand-new developer unit with fresh incentives or discounts.

But once the project is fully sold out and reaches TOP, your resale unit may become one of the few available options in the development. Scarcity can work in your favour, especially if buyers specifically want that project but missed the initial launch.

There is no "correct" answer. Ultimately, it depends on what kind of owner or investor you are.

Sub-sales make sense when your gross gain comfortably exceeds your SSD liability and you have a clear plan for the capital. It is suited for those who want to cash out early, avoid renovation costs, or free up capital for another opportunity. Some people also simply do not want the hassle of becoming a landlord or waiting several more years just to squeeze out potentially higher gains. For them, taking a solid profit today and moving on feels more comfortable.

Waiting until after TOP, on the other hand, tends to suit people with a longer investment horizon. If you are comfortable holding the property, renting it out, and waiting for the right buyer, there may be more upside over time. You also get access to a wider buyer pool once the project is completed, and in many cases, you avoid SSD entirely by then.

The important thing is not to treat sub-sale as some guaranteed shortcut to easy money. The post-Covid era made sub-sales highly profitable, but it is no longer the norm today, where the market is more measured and SSD rules are tighter.

So, I'll ask again. If you bought a new-launch condo two or three years ago, would you sell now or wait until TOP?