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Novo Place, a 504-unit executive condominium (EC) jointly developed by Hoi Hup Realty and Sunway Developments, saw a strong take-up rate during its sales launch on November 16. According to CEO of Huttons Asia Mark Yip, the project sold 286 units, accounting for 57% of the total units, with an average price of $1,654 psf. This is a significant take-up rate that reflects the strong demand for affordable private residential lifestyle among buyers.
However, Yip also believes that the take-up rate would have been even higher if not for the 30% quota for second-timers set by the government. The split between first- and second-timer buyers was 47% and 53%, respectively. Yip suggests that the government should consider increasing the quota for second-timers, as the upcoming ballot for second-timers in a month is likely to see a high demand.
ECs are currently the only housing segment that offers homebuyers the option of a deferred payment scheme, which allows them to lock in their preferred unit and service the loan later. This is an appealing option for HDB upgraders who still have an outstanding loan on their flat, as it eases their financial burden. Additionally, HDB upgraders are granted upfront remission on the Additional Buyer’s Stamp Duty (ABSD) when they purchase a new EC, providing them with the flexibility to continue staying in their existing flat and sell it within six months of collecting the keys to their new EC unit.
Located in Tengah’s Plantation district, Novo Place is within walking distance of the upcoming Tengah Park MRT Station on the future Jurong Regional Line, expected to be completed by 2028. The project comprises seven 18-storey residential blocks with a unit mix of three and four-bedroom plus-study units. The project has seen strong demand from HDB upgraders who want a bigger space and greater flexibility in terms of space use, with the three-bedroom plus-study units being 97% sold and four-bedroom units fully sold. More than half of the four-bedroom plus-study units have also been sold.
According to industry experts, current EC buyers are in a more advantageous position as prices for future EC launches are expected to be higher due to rising land and construction costs. Lumina Grand, the first EC project launched this year by City Developments Ltd, has already sold 84% of its units at an average price of $1,510 psf. With a record six projects set to launch in November, including Novo Place, it is expected that prices for EC launches will reach new highs of $1,700 psf.
When it comes to investing in Singapore, it is crucial for foreign investors to be familiar with the regulations and limitations surrounding property ownership. In comparison to landed properties, foreigners have more freedom in purchasing condominiums as they are subject to less stringent ownership requirements. However, it’s important to note that foreign buyers must pay an Additional Buyer’s Stamp Duty (ABSD) of 20% for their initial property purchase. Despite this extra expense, the steady and promising growth of the Singapore real estate market remains a strong draw for foreign investment. To explore potential investments in Singapore, check out Singapore Projects.