Discover the pros and cons of subsale factories versus new launching factories in Malaysia, and find out which option offers better returns for investors and owner-occupiers.
Subsale Factory vs New Launching Factory: Which is Better for Your Investment?
Investing in factory properties is one of the most profitable strategies for capital growth, rental yield, and long-term wealth. But should you choose a subsale factory or go for a new launching factory? In this blog, we break down the key differences, pros and cons, and investment considerations so you can decide with confidence.
What is a Subsale Factory?
A subsale factory is a property that has been previously owned and is being resold on the market. These units are typically completed and ready for handover with tenants or vacant.
What is a New Launching Factory?
A new launching factory is a brand-new property being released by the developer. These are often found in upcoming industrial parks and may offer early-bird pricing and attractive payment schemes.
1. Price Comparison
Subsale factories may have negotiated pricing depending on the owner’s urgency to sell, but sometimes command a premium if the location is established. Meanwhile, new launching factories often offer early incentives like flexible payment terms or discounts for early commitments.
2. Location & Infrastructure
- Subsale – Usually in matured industrial hubs with existing transport links, tenants, and amenities.
- New Launch – Positioned in growing industrial corridors with upcoming infrastructure planned like highways and utilities.
3. Rental Yield & Tenancy
Subsale factories can provide immediate rental income if there are existing tenants. New launching factories may require waiting for completion and tenant acquisition.
4. Risk & Return Profile
New launches carry development risk (delay or market changes) but can yield higher capital gains if demand rises. Subsale properties are more predictable with historical performance to guide returns.
5. Financing & Stamp Duty
Lenders may view subsale and new launch properties differently. Subsale factories with tenancy history might secure lending easier, while new launches may allow progressive payment financing.
Which Should You Choose?
Your decision should be based on:
- Investment horizon (short vs long term)
- Cash flow expectations
- Risk tolerance
- Location preference
If you’re looking for immediate income, a subsale could be ideal. If you’re focused on future capital growth, a new launch in an upcoming park could outperform over time.
