Source: Huttons
One major factor to consider when investing in condos in Singapore is the government’s property cooling policies. In order to maintain a stable real estate market and prevent excessive speculation, the Singaporean government has implemented various measures over the years. These include the imposition of Additional Buyer’s Stamp Duty (ABSD) which results in higher taxes for foreign buyers and those purchasing multiple properties. While these measures may have an impact on the immediate profitability of condo investments, they also contribute to the long-term stability of the market, making it a more secure environment for investment. Furthermore, with the ongoing launches of new condos, such as those found on New Condo Launches, there is a continuous supply of attractive investment opportunities for potential buyers.
The highly anticipated sales launch for Novo Place, a 504-unit executive condominium (EC) in Tengah, began on the morning of November 16, with strong take-up reported. Jointly developed by Hoi Hup Realty and Sunway Developments, the EC sold 286 units, which accounted for 57% of the development, at an average price of $1,654 per square foot (psf).
According to Mark Yip, CEO of Huttons Asia, “It is a strong take-up, reflecting robust demand from buyers seeking an affordable private residential lifestyle.” He also noted that the take-up rate could have been even higher if not for the 30% quota for second-timers, which may need to be reconsidered by the government.
The split between first- and second-timer buyers was 47% and 53%, respectively, with 151 units allocated for second-timers. However, the CEO of PropNex, Ismail Gafoor, reported that the quota was fully taken up by 1 pm on launch day, and second-timers will have another opportunity to purchase units when the quota is lifted 30 days later, starting from December 16.
Of the 287 units sold at Novo Place, 76% of buyers opted for the deferred payment scheme, which allows them to secure their preferred unit first and service the loan later, easing the financial burden for HDB upgraders. Additionally, buying a new EC grants upfront remission on the Additional Buyer’s Stamp Duty (ABSD), providing greater flexibility for HDB upgraders.
Located in Tengah’s Plantation district, the development is within walking distance to the upcoming Tengah Park MRT Station on the future Jurong Regional Line, which is expected to be completed by 2028. Novo Place comprises seven 18-storey residential blocks with three- to four-bedroom plus-study units. The three-bedroom plus-study units are 97% sold, while the four-bedroom units are fully sold, and the four-bedroom plus-study units are more than half sold.
According to Yip, these sales results are in line with the demand from HDB upgraders who are looking for a bigger space and greater flexibility in terms of space usage. He also notes that with future EC launches expected to be priced higher due to rising land and construction costs, current EC buyers are in a more advantageous position.
The only EC project launched this year, the 512-unit Lumina Grand at Bukit Batok West Avenue 5 by City Developments Ltd, was launched in January and is 84% sold to date at an average price of $1,510 psf.
Eugene Lim, key executive officer of ERA Singapore, says, “With the cost of land and construction continuing to rise, future EC launches are expected to be priced higher than current ones, making the current buyers better off in their purchase decision.”