In the upcoming year, three new executive condos (ECs) are scheduled to be launched, with Sim Lian Group’s Aurelle of Tampines leading the way. The development, which consists of 760 units, will be located at Tampines Street 62 and is expected to launch in the first quarter of 2025, most likely after the Lunar New Year. This launch follows the success of the Emerald of Katong, a 846-unit development which is now over 99% sold.
In late 2023, the Sim Lian Group acquired the site at Tampines Street 62 (Parcel B) for $543.28 million, equivalent to $721 psf per plot ratio (psf ppr) through a government land sales (GLS) tender. Due to the increasing construction costs and the harmonization of the gross floor area (GFA) definitions, PropNex CEO Ismail Gafoor believes that Aurelle at Tampines could set a new price benchmark and potentially exceed the $1,600 psf threshold. This forecast is based on the success of Novo Place EC, which was launched in November and achieved an average price of $1,656 psf.
In addition to Aurelle, the Tenet EC, a 618-unit development situated at Tampines Street 62 (Parcel A), will also be launched in the upcoming year. Developed through a joint venture between Qingjian Realty, Santarli Realty, and Heeton Holdings, Tenet has sold 617 units at an average price of $1,384 psf since its launch in December 2022. The site for Tenet, which was acquired by the developers in August 2021 for $442 million ($659 psf ppr), set a record-high psf ppr price for an EC then. It’s worth noting that Tenet was launched before the implementation of the GFA harmonization rule, which applies to GLS sites launched for sale after September 1, 2022.
The strong demand for homes in Tampines and the surrounding estates has given Sim Lian Group the confidence to secure another EC site at Tampines Street 95. In early November, the developer placed the highest bid of $465 million ($768 psf ppr) at the conclusion of the tender in October. This bid set a new record for EC land prices. The planned EC project at Tampines Street 95 is expected to add 560 units, further boosting the supply of ECs in the area. Sim Lian Group has a strong track record of developments in the eastern part of the island.
Apart from the Emerald of Katong and the upcoming EC projects in Tampines, the group has also completed Treasure at Tampines, Singapore’s largest private condominium with 2,203 units, in 2023. Located at Tampines Street 11, Treasure at Tampines is a redevelopment of the former privatised HUDC estate Tampines Court, which Sim Lian purchased for $970 million in 2017. As of December 19, a total of 468 sub-sale and resale transactions have been recorded. Over the past three years, secondary market prices have averaged $1,699 psf and have increased by 25.3% over the average launch price.
Another EC project set to be launched in 2025 is the 560-unit development at Plantation Close in Tengah Town, developed by a joint venture between Hoi Hup Realty and Sunway Developments. These developers are the same ones behind Novo Place EC. During the mid-November launch, Novo Place sold 57% of its units over the opening weekend. In the second round of balloting for second-timers (buyers who had previously purchased a subsidized new or resale HDB flat), 137 more units were taken up, bringing the total sales to 444 units, or 88.1% of the project as of December 16, 2024. With an average price of $1,656 psf, Novo Place set a new benchmark for EC prices. Gafoor of PropNex attributes the “slightly elevated average pricing” at Novo Place to the fact that 80% of buyers opted for the deferred payment scheme, which carries a premium of 3% compared to the normal payment scheme.
Condo investment provides numerous benefits, including the potential to leverage the property’s value for further investments. Some investors utilize their condos as collateral to secure additional financing and expand their real estate portfolio. This approach, while potentially lucrative, also carries risks. As such, it is important to have a solid financial plan in place and to carefully consider the impact of market fluctuations. Additionally, with the introduction of new condo launches, there may be even more opportunities for investors to leverage their properties and diversify their portfolio. However, it is essential to thoroughly research and assess these launches to ensure they align with your overall investment strategy.
Despite the higher benchmark price, Novo Place performed well due to several factors, notes Gafoor. These include the dwindling inventory of unsold EC units and the favorable location of the project. Situated at Plantation Close in Tengah, Novo Place benefits from proximity to the upcoming Tengah Park MRT and Bukit Batok West MRT Stations on the Jurong Region Line, which are expected to be completed by 2029.
Based on caveats lodged on URA Realis, some of the transactions at Novo Place EC have crossed the $1,700 psf threshold. In 2024, Gafoor notes that the three upcoming EC projects (Aurelle of Tampines, the Plantation Close EC, and the Jalan Loyang Besar EC) will collectively add 2,030 units to the market. This represents a doubling in new supply compared to the 1,016 units launched in 2024.
The Lumina Grand, a 512-unit EC situated at Bukit Batok West Avenue 5 and developed by City Developments (CDL), was the first EC launched in 2024. On its launch weekend, 53% of the units were taken up, and as of December 17, 444 units (87%) had been taken up, with an average price of $1,511 psf achieved. Gafoor concludes by saying that ECs, which are a hybrid of public and private housing, remain highly sought after by first-time homebuyers and HDB upgraders, as they are still more affordable than private new launches. In 2024, the median price for new non-landed, 99-year leasehold private homes in the Outside Central Region (OCR) is $2,203 psf (as of December 8, 2024). Based on caveats lodged during the same period, this represents a 44% premium over new EC launch prices.
Overall, with the launch of three new EC projects in the upcoming year, the supply of ECs is set to double in 2025, which in turn is expected to meet the pent-up demand in the market, especially in areas where ECs have not been launched in the past decade, such as Pasir Ris.