Resale home (中古屋), pre-sale unit (預售屋) or new build (新成屋)? None of the three is best in the abstract; the right one depends on your situation now. If you need to move in soon and want to see what you are buying, resale and new build fit. If you want to spread your cash over time and can wait, pre-sale is an option, though stalled projects in Taichung, Chiayi and Taoyuan in 2026 have made many buyers cautious. This guide compares handover time, price flexibility, loan ratios and buyer protection, including the pre-sale escrow rules the Executive Yuan strengthened in May 2026.
The three types in one line each
- See it before you buy: resale homes are negotiable and quick to move into.
- Spread the cash: pre-sale units take 2 to 4 years to hand over.
- Brand new: new builds carry a developer warranty and are quick to move into.
(Based on the Ministry of the Interior’s mandatory terms for pre-sale contracts; data as of July 2026.)
Definitions
A resale home has been lived in and has a registration history; it may be a few years old or several decades. It is sold through the standard finished-home process: the three documents and one contract (三書一約, see the documents you sign) plus escrow (履約保證, a third-party account that holds the price until title transfers). A new build is complete, has its occupancy permit and has not been lived in long-term; it follows the same process, but the condition is new and usually still under the developer’s warranty. A pre-sale unit is sold before or during construction. The buyer signs a pre-sale contract with the developer and takes possession when the building is finished; the process and protections are different.
| Resale | New build | Pre-sale | |
|---|---|---|---|
| Handover | 1 to 3 months after the deal | 1 to 3 months after the deal | 2 to 4 years after signing |
| Can you see it? | Actual layout and light | Actual layout and light | Only the sales centre and show flat |
| Payment | Own funds ready in one go after signing | Own funds ready in one go after signing | Construction-stage instalments spread the burden |
| Condition | Depends on age; may need renovation and inspection | New, usually under warranty | New, but build quality unverified until completion |
| Who you deal with | Agent representing the buyer in negotiation | Agent or developer’s sales team | Developer’s sales team, single fixed price |
| Safety mechanism | Three documents and one contract plus escrow | Three documents and one contract plus escrow | One of five pre-sale escrow mechanisms (below) |
Our view: Resale and new build are almost identical in process; the difference is the age of the home. Pre-sale is a different logic altogether: you are buying a promise of future completion, with lighter cash pressure but the risk of build quality and schedule.
Handover time and price flexibility
After a resale or new-build deal is agreed, the documents, loan disbursement and transfer usually take 1 to 3 months, which suits buyers with a fixed moving date, an expiring lease or a growing family. Pre-sale means waiting for completion, commonly 2 to 4 years from signing. Prices may rise in that time, and your own circumstances (job, family) may change so that the original plan no longer fits.
On cash flow, pre-sale spreads payments across construction stages, so each instalment is lighter. Resale and new build usually require the full own funds within a short period after signing, so the pressure is concentrated. See down payment for the full own-funds calculation.
Loan ratios and payment methods
Resale and new build are finished homes, so banks lend against actual condition and local market prices, and policy loans such as the New Youth Housing Loan 3.0 (新青安3.0) apply mainly to finished homes (some pre-sale units qualify under stricter conditions). Ratios commonly run 60 to 80%, depending on credit, debt ratio and the property. See debt ratios and your mortgage.
Pre-sale units are usually financed through a bank the developer works with, disbursed in stages as construction progresses. The final ratio is fixed only near completion, after a real appraisal. The ratio you are shown at signing is indicative, and if the final approval falls short, your cash requirement jumps at the worst moment. This is a common blind spot for pre-sale buyers.
For foreign nationals: The New Youth Housing Loan is for ROC citizens with household registration (戶籍) and generally does not apply otherwise. Plan on a standard bank mortgage and ask us which lenders work with foreign buyers.
Pre-sale escrow: five mechanisms and the 2026 changes
Under the Ministry of the Interior’s mandatory and prohibited terms for pre-sale contracts (預售屋買賣定型化契約應記載及不得記載事項), the developer must adopt one of five escrow mechanisms: a real estate development trust (land and funds held in a trust account), a price trust (payments held in trust and released only for construction costs), a price refund guarantee (a financial institution guarantees refunds if the building cannot be delivered), a joint guarantee by a peer developer (a developer of equal standing guarantees completion), or a trade association joint guarantee scheme.
After stalled projects in Chiayi, Taoyuan and Taichung in 2025, the Executive Yuan’s consumer protection committee approved three strengthening amendments on 14 May 2026: buyers’ payments should as a rule be deposited by the buyer directly into the trust or guarantee account; the money may be used only for construction costs and related taxes; and peer guarantors and trade association guarantors must take over construction through to completion and handover. If a developer fails, the buyer’s position is clearer than before.
Our view: When viewing a pre-sale project, insist that the contract states which mechanism applies and the name and number of the trust or guarantee account. Under the new rules your payments should go straight into that account. If the sales staff are vague or cannot provide it, treat that as a warning and look elsewhere.
Which type suits you
Need to move in soon and want to see what you are buying: resale or new build. You can inspect the layout, light and spacing, the price is easier to judge against actual transaction records, and handover is quick.
Want to spread your cash and can wait: pre-sale is worth considering. Construction-stage instalments ease the lump-sum pressure, but confirm the escrow mechanism, choose a developer with a track record, and build the 2 to 4 year wait and its uncertainties into your plan.
Want a warranty and a quick move: new build is the compromise. It is new, usually under warranty, and hands over as fast as resale, though usually at a slightly higher price than a resale home in the same area.
Our view: With resale and new build, an agent works for the buyer throughout: comparing prices, negotiating, attending viewings and inspections. With pre-sale you deal with the developer’s sales team on a single project with little room to negotiate. If you value having someone check prices and inspect the home on your side, resale or new build with an agent is the more practical choice.
FAQ
Which is safer, pre-sale or finished?
The risks differ. Finished homes carry condition and title risk; pre-sale carries completion and developer-solvency risk. Since May 2026 the pre-sale escrow rules require ring-fenced funds and a duty to complete construction, so protection is clearer than before, and choosing an established developer lowers the risk further.
What are the five pre-sale escrow mechanisms?
Real estate development trust, price trust, price refund guarantee, peer developer joint guarantee, and trade association joint guarantee. The developer must adopt one and state it in the contract. Check which one, and that the account name and number are written in.
Is a resale home always cheaper than pre-sale?
Not always. In the same area and on like-for-like terms, resale unit prices are usually below new build and pre-sale, but an older home that needs renovation may cost as much overall as a new build once renovation is added. Compare with the renovation budget included.
Is a new build a resale home or a pre-sale unit?
Neither. It is its own category: completed, with an occupancy permit, not yet lived in long-term. The process matches finished homes (three documents and one contract, escrow), not pre-sale.
How do I judge a developer’s failure risk on a pre-sale project?
Check the developer’s completed projects and public financial information, and confirm before signing that the escrow mechanism and account details are stated clearly. Taichung, Chiayi and Taoyuan have all seen stalled projects in recent years; a developer with a stable track record is the most direct way to lower the risk.
Timeline and risk tolerance first, then the type
There is no universally right answer. Start from when you need to move, how your cash is arranged and how much uncertainty you can carry. Need to move soon and want to see it: resale or new build. Can wait and want to spread the cash: pre-sale, with the escrow mechanism confirmed. For what to look at once you have chosen, see the viewing checklist, or contact us to talk it through.