On November 16, sales bookings officially began for the highly anticipated Novo Place, a 504-unit executive condo (EC) jointly developed by Hoi Hup Realty and Sunway Developments. The response was strong, with 286 units, or 57%, sold at an average price of $1,654 psf.
According to Mark Yip, CEO of Huttons Asia, this is a testament to the robust demand for affordable private residential options. However, the take-up rate could have been even higher if not for the 30% quota for second-timers. Yip suggests that the government should consider increasing this quota in order to meet the potential demand.
The split between first-timer and second-timer buyers was 47% and 53%, respectively. “Second-timers” refers to those who have previously purchased subsidized housing, be it a new or resale HDB flat or an EC.
Ismail Gafoor, CEO of PropNex, noted that the 30% quota set aside for second-timers at Novo Place was fully taken up by 1 pm on launch day. However, these buyers will have another chance to secure a unit when the quota is lifted in 30 days’ time, starting from December 16.
Of the 287 units sold, 76% of buyers opted for the deferred payment scheme, while the remaining 24% went for the normal payment scheme, according to Huttons. This unique feature of ECs allows homebuyers to secure their preferred unit and pay for it later, easing the financial burden for HDB upgraders who still have an outstanding loan on their existing flat.
Additionally, HDB upgraders enjoy upfront remission on the Additional Buyer’s Stamp Duty (ABSD) when purchasing a new EC. This means they can continue to stay in their current flat and sell it within six months of collecting the keys to their new EC unit.
Novo Place is located in Tengah’s Plantation district, within walking distance to the future Tengah Park MRT Station on the upcoming Jurong Regional Line. The station is expected to be completed by 2028.
The EC project comprises seven 18-storey residential blocks and offers a mix of three- to four-bedroom plus-study units. The three-bedroom plus-study units are 97% sold, while the four-bedroom units are fully sold. More than half of the four-bedroom plus-study units have also been sold. This reflects the demand from HDB upgraders seeking more space and flexibility in terms of their living arrangements, according to Yip.
Novo Place is the second EC project to be launched this year, following the 512-unit Lumina Grand at Bukit Batok West Avenue 5 by City Developments Ltd in January. The latter is currently 84% sold at an average price of $1,510 psf.
According to Eugene Lim, key executive officer of ERA Singapore, with the rising land and construction costs, future EC launches are expected to be priced higher, making current buyers more fortunate to have secured a unit at Novo Place.
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One of the advantages of investing in a condo is the opportunity to leverage the property’s value for future investments. This means that investors can use their condo as collateral to secure additional financing for new investments, allowing them to grow their real estate portfolio. By utilizing this strategy, investors can potentially increase their returns, but it is important to note that it also comes with certain risks. Therefore, it is vital to have a solid financial plan in place and carefully consider the potential effects of market fluctuations. In addition, keeping an eye on New Condo Launches can provide investors with even more opportunities to expand their investment options.
In conclusion, the strong sales results of Novo Place and other recent EC launches are a testament to the sustained demand for this housing segment, with prices expected to continue rising. As a result, six projects are set to be launched in November alone, making this year’s end a record-breaking one for the EC market.