Real Estate Subsale: A Guide to Buying and Selling Property in Malaysia & Singapore

The real estate subsale market, also known as the secondary property market, plays a crucial role in Malaysia and Singapore’s property landscape. Unlike new developments, subsale properties are pre-owned homes or commercial units that are sold by existing owners. This market offers numerous benefits for buyers and sellers alike, making it a popular choice among property investors and homeowners.

What is a Subsale Property?

A subsale property refers to an existing property being resold by the owner, rather than a new unit bought directly from a developer. These properties are typically completed and ready for occupancy, making them attractive to buyers who want to move in immediately or avoid waiting for new projects to be built.

Advantages of Buying a Subsale Property

1. Move-In Ready – Unlike new launches, subsale properties are already built, allowing buyers to inspect the actual unit before purchasing.
2. Established Neighborhoods – Most subsale properties are located in mature townships with complete infrastructure, amenities, and transportation access.
3. Potential for Negotiation – Unlike developer pricing, buyers can negotiate with sellers for a better deal, especially in a slow market.
4. Immediate Rental Income – Investors can start earning rental income right away, making subsale properties a viable choice for investment.

Things to Consider When Buying a Subsale Property

1. Property Condition – Inspect the property for defects, maintenance issues, or renovations needed.
2. Legal and Title Checks – Ensure the property has a clean title with no outstanding encumbrances, loans, or disputes.
3. Market Value & Price Negotiation – Research current market prices and negotiate based on the property’s condition and location.
4. Loan & Financing – Check mortgage rates from banks in Malaysia (Maybank, CIMB, Public Bank) and Singapore (DBS, UOB, OCBC) to secure the best financing option.
5. Additional Costs – Consider costs such as stamp duty, legal fees, valuation fees, and renovation expenses.

Process of Buying a Subsale Property

1. Property Search & Viewing – Engage real estate agents or browse property portals like PropertyGuru, iProperty, EdgeProp to find listings.
2. Negotiate & Sign Offer to Purchase (OTP) – Once a price is agreed upon, both parties sign the OTP with a deposit (usually 1-3% of the purchase price).
3. Secure Financing & Legal Processing – Apply for a home loan and hire a lawyer to handle legal documentation.
4. Sign the Sale & Purchase Agreement (SPA) – This formalizes the transaction, and buyers pay the remaining deposit (usually 10% of the property price).
5. Stamp Duty & Transfer of Ownership – Buyers must pay stamp duty before the title transfer process is completed.
6. Final Settlement & Handover – Once full payment is made, the buyer receives the keys and ownership is officially transferred.

Selling a Subsale Property: Key Steps for Sellers

1. Valuation & Pricing – Get a professional valuation or compare market prices to set a competitive price.
2. Property Listing & Marketing – List the property on major platforms, hire an agent, or promote on social media.
3. Legal & Documentation – Prepare all legal documents, including property title, bank loan clearance (if applicable), and tax compliance.
4. Negotiation & Offer Acceptance – Work with potential buyers to finalize a deal.
5. Sale & Purchase Agreement (SPA) – Engage a lawyer to complete the legal transaction and receive payment in stages.
6. Final Transfer & Handover – Once full payment is received, transfer ownership to the buyer.

Market Trends for Subsale Properties in Malaysia & Singapore

• Malaysia: The demand for subsale properties remains steady, especially in urban areas like Kuala Lumpur, Penang, and Johor Bahru, where buyers prefer ready-to-move-in homes over waiting for new launches.
• Singapore: With rising property prices, many homebuyers opt for resale HDB flats and private condos as they offer better value compared to new developments.

Subsale properties offer numerous advantages for both buyers and sellers. Buyers can get immediate access to established locations, while sellers can benefit from rising property values. Whether you’re looking to invest or purchase a home, understanding the process and conducting due diligence is key to making a successful property transaction.