and December, says PropNexGet your copy of EdgeProp’s digital urgent last minute sports bet
Novo Place saw strong sales on its launch day, with 57% of units sold at an average price of $1,654 psf. The 504-unit executive condo (EC), jointly developed by Hoi Hup Realty and Sunway Developments, opened bookings on Nov 16. According to Mark Yip, CEO of Huttons Asia, the high take-up rate reflects the strong demand for affordable private residential options. However, the presence of a 30% quota for second-timer buyers may have affected sales numbers.
The split between first-time buyers and second-timers was 47% and 53%, respectively. Yip suggests that the government may want to consider increasing the quota for second-timers, as the balloting for this group in a month’s time is expected to also see high demand. For those unfamiliar, second-timers refer to those who have previously purchased subsidized housing, such as a new or resale HDB flat or an EC.
In regards to Novo Place, the quota for second-timers was fully taken up by 1 pm on launch day, says Ismail Gafoor, CEO of PropNex. However, he adds that these buyers will have another opportunity to book units 30 days later when the quota is lifted. This will allow them to make bookings starting from Dec 16. Out of the 287 units sold, 76% of buyers opted for the deferred payment scheme, while the remaining 24% chose the normal payment scheme, according to Huttons.
One of the biggest advantages of buying an EC is the option of a deferred payment scheme, which allows homebuyers to secure their preferred unit first and service the loan later. According to Yip, this is particularly helpful for HDB upgraders who still have an outstanding loan on their flat. Additionally, purchasing a new EC also grants buyers upfront remission on the Additional Buyer’s Stamp Duty (ABSD). This means that HDB upgraders can continue to stay in their current 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 situated within walking distance to the upcoming Tengah Park MRT Station, 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 have been 97% sold, while the four-bedroom units have been fully sold. The four-bedroom plus-study units have seen more than half sold. These sales figures line up with the demand from HDB upgraders who are looking for larger living spaces and more flexibility in terms of space usage, notes 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, was launched in January and has seen an 84% take-up rate to date, at an average price of $1,510 psf. According to Eugene Lim, key executive officer of ERA Singapore, with future EC launches expected to be priced even higher due to rising land and construction costs, current buyers are in a more advantageous position.
Last 10 transactions at Lumina Grand
Source: EdgeProp
The demand for investing in Singapore’s condo market has skyrocketed in recent years, with both local and foreign investors seeking to take advantage of the city-state’s stable economy, political stability, and exceptional quality of life. With an array of opportunities available in Singapore’s real estate market, condos stand out as a top choice due to their convenience, amenities, and potential for strong returns. Therefore, it is no surprise that more and more investors are looking to put their money into Singapore’s condo market, with the aim of reaping the benefits that come with it. For those considering this option, here are the key advantages, important considerations, and necessary steps to take when investing in a condo in Singapore. Additionally, researching and exploring various Singapore Projects can provide further insight and opportunities for potential investors.
With limited EC supply and rising prices, it is not surprising that Novo Place has seen a strong take-up rate on its launch day. As such, it is expected that more EC projects will be launching in the near future, further testing the market’s strength.