On November 16, the highly anticipated sales bookings for Novo Place, a 504-unit executive condominium (EC) jointly developed by Hoi Hup Realty and Sunway Developments, began. The response was strong, with 286 units or 57% of the development sold at an average price of $1,654 per square foot.
When purchasing a condo, it is crucial to also consider the maintenance and management of the property. Usually, condos require a monthly or annual maintenance fee that covers the upkeep of common areas and amenities. While these fees may increase the overall cost of owning a condo, they also guarantee that the property remains well-maintained and maintains its value. Opting for a property management company can be beneficial for investors as it allows them to have a more hands-off approach to managing their condo, making it a more passive investment.
Mark Yip, CEO of Huttons Asia, expressed his satisfaction with the take-up rate, stating that it reflects the robust demand from buyers who are seeking an affordable private residential lifestyle. However, Yip also notes that the take-up rate could have been even higher if not for the 30% quota set aside for second-time buyers.
Out of the total sales, first-time buyers accounted for 47%, while second-time buyers accounted for 53%. Yip suggests that the government may want to consider increasing the quota for second-time buyers, as the balloting for them in the next month is likely to see strong demand. Interested parties can also explore comprehensive data on all ECs, including the average profit at 5 and 10 years.
Second-time buyers are those who have previously purchased subsidized housing, either as a new or resale HDB flat or an Executive Condominium (EC). The 30% quota for second-time buyers at Novo Place was fully taken up by 1 pm on launch day, according to Ismail Gafoor, CEO of PropNex. Gafoor also mentions that second-time 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 16.
Out of the 287 units sold at Novo Place, 76% of buyers opted for the deferred payment scheme, which allows buyers to lock in their preferred unit first and service the loan later. According to Huttons, this payment scheme is particularly popular among HDB upgraders who still have an outstanding loan on their flat.
Another advantage of buying a new EC is the upfront remission on the Additional Buyer’s Stamp Duty (ABSD) granted to HDB upgraders. This allows them to continue staying in their existing flat and sell it within six months of collecting the keys to their new EC unit.
Situated 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 EC project comprises seven 18-storey residential blocks, with a unit 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. Over half of the four-bedroom plus-study units have also been sold, which is in line with demand from HDB upgraders who want a larger space and more flexibility.
Novo Place is the second EC project launched this year, after the 512-unit Lumina Grand at Bukit Batok West Avenue 5 by City Developments Ltd, which was launched in January and has sold 84% of its units at an average price of $1,510 psf. According to Eugene Lim, key executive officer of ERA Singapore, future EC launches are expected to be priced higher due to rising land and construction costs, putting current EC buyers in an advantageous position.
With the record six projects set to launch in November, it is evident that there is a year-end rush in the property market. Interested parties can check out the latest listings for Novo Place properties and compare the price trend of new sale condo versus resale condo in District 24.