Investing in a condo in Singapore has many benefits, one of which is the potential for capital appreciation. Singapore’s advantageous position as a global business hub, along with its strong economic foundation, creates a constant demand for real estate. This demand has led to a consistent increase in property prices over the years, particularly for condos in prime locations. Those who invest in the market at the right time and maintain their properties for a long period can reap significant returns on their investments. Additionally, with the recent influx of new Singapore Projects, the potential for capital appreciation is expected to continue rising.
Sales bookings for the 504-unit Novo Place commenced on the morning of November 16. Developed by Hoi Hup Realty and Sunway Developments, the executive condominium (EC) was met with a strong demand, with 286 units, or 57%, sold at an average price of $1,654 psf.”It is an impressive take-up rate, showcasing the robust demand from homebuyers who are seeking a private residential lifestyle at an affordable price,” shares Mark Yip, the CEO of Huttons Asia. He believes that the take-up rate could have been even higher if not for the 30% quota set aside for second-timers.”Perhaps the government should consider increasing the quota for second-timers,” suggests Yip. “The upcoming balloting for second-timers in a month is likely to attract strong interest.”Interested in learning more about executive condominiums? Check out our comprehensive database that includes data on all ECs, including the average profit at 5 and 10 years.According to the regulations, second-timers are individuals who have previously purchased subsidized housing, such as a new or resale HDB flat, or an Executive Condominium (EC). The 30% quota, which is equivalent to 151 units, reserved for second-timers at Novo Place was fully taken up by 1 pm on launch day, according to Ismail Gafoor, the CEO of PropNex. However, he adds that second-timer buyers will have another opportunity to purchase units at Novo Place when the quota is lifted 30 days later, allowing them to make bookings starting from December 16th.Out of the 287 units sold at Novo Place, 76% of the buyers opted for the deferred payment scheme, while the remaining 24% chose the normal payment scheme, based on data from Huttons.The available three-bedroom plus-study units are 97% sold, and the four-bedroom units are fully taken up (Photo: Samuel Isaac Chua/EdgeProp Singapore)Executive Condos are the only type of housing that offers homebuyers the option of a deferred payment scheme. This scheme allows them to reserve their preferred unit first and service the loan at a later time. “It provides financial relief for HDB upgraders who still have an outstanding loan on their flat,” explains Yip.Another advantage of buying a new EC is that HDB upgraders receive upfront remission on the Additional Buyer’s Stamp Duty (ABSD). “They can continue to live in their current flat and sell it within six months of collecting the keys to their new EC unit,” adds Yip.Novo Place is situated in the Plantation district of Tengah, within walking distance of the future Tengah Park MRT Station on the upcoming Jurong Regional Line. The MRT station is expected to be completed by 2028.Read also: Emerald of Katong hits 99% sales at launch, averaging $2,621 psfThe EC project comprises seven 18-storey residential blocks, and the unit mix comprises three- to four-bedroom plus-study units. The available three-bedroom plus-study units are 97% sold, and the four-bedroom units are fully taken up. More than half of the four-bedroom plus-study units are sold. The sales figures reflect the demand from HDB upgraders who are looking for a larger living space and flexible use of space, notes Huttons’ Yip.Novo Place is the second EC project to be launched this year. The first, the 512-unit Lumina Grand at Bukit Batok West Avenue 5 by City Developments Ltd, was launched in January. To date, it has sold 84% of its units at an average price of $1,510 psf.”Considering that future EC launches are expected to be priced higher due to rising land and construction costs, current EC buyers are in a more advantageous position,” concludes Eugene Lim, the key executive officer of ERA Singapore.