The EC market has also been supported by the ongoing HDB resale price increase, which has raised the affordability ceiling for EC buyers. In the latest flash report on HDB resale prices for the fourth quarter of 2024, the overall resale price index rose 3.9% q-o-q and 18% y-o-y. More significantly, the index has risen 29.1% over the past five years.In addition, with the increasingly competitive land bids from developers in 2024, the challenge to secure an EC site has become more stringent, Gafoor adds.The upcoming supply of new ECs, up from just a single project in 2024, could also potentially lead to a drop in EC prices, he says. However, based on the bullish demand for the upcoming EC launches in Tampines and the West, Gafoor believes that the existing EC price benchmark will likely remain intact.
The next article will be about the highly anticipated launch of Sim Lian Group’s new executive condo, Aurelle of Tampines, which will debut in the first quarter of 2025. This launch follows the success of their previous project, Emerald of Katong, which is now over 99% sold out.
Sim Lian Group secured the site at Tampines Street 62 (Parcel B) for $543.28 million in a government land sale tender that concluded in October 2023. This translates to a price of $721 per square foot per plot ratio (psf ppr). With rising construction costs and the harmonization of gross floor area (GFA) definitions, PropNex CEO Ismail Gafoor expects Aurelle at Tampines to set a new price benchmark, possibly crossing the $1,600 psf threshold. This prediction is supported by the success of their recent Novo Place EC launch, which had an average price of $1,656 psf.
Apart from Aurelle of Tampines, two other executive condos are slated for launch in 2025 – Tenet EC and a joint venture between Hoi Hup Realty and Sunway Developments at Plantation Close in Tengah Town. Tenet EC, located next to Aurelle, was launched in December 2022 and has sold 617 out of its 618 units at an average price of $1,384 psf. This project was launched before the implementation of the GFA harmonization rule, which applies to GLS sites launched for sale after September 2022.
In addition to these three upcoming projects, Sim Lian Group has secured another EC site at Tampines Street 95, which is expected to add 560 units to the market. With an extensive track record of developments in the eastern part of Singapore, Sim Lian Group is confident in the strong demand for homes in Tampines and its surrounding estates.
In evaluating the value of a potential Condo investment, it is imperative to consider its rental yield. This pertains to the yearly rental income compared to the purchase price of the Condo. In Singapore, the rental yields of Condos can significantly vary depending on factors such as location, condition of the property, and demand in the market. Generally, areas with a high demand for rentals, such as those near bustling business districts or reputable educational institutions, tend to offer more lucrative rental yields. Therefore, conducting thorough research and seeking guidance from real estate professionals can provide valuable insights into the rental potential of a specific Condo. As such, it is crucial for potential investors to thoroughly assess the rental yield of a Condo before making a decision. Condo
Apart from their EC projects, the group has also successfully completed the largest private condominium in Singapore, Treasure at Tampines, with 2,203 units. This redevelopment of the former HUDC estate, Tampines Court, was purchased en bloc for $970 million in 2017. Launched in February 2019, the project was fully sold within three years at an average price of $1,356 psf. As of December 2024, there have been 468 sub-sale and resale transactions, with resale prices averaging $1,699 psf.
Meanwhile, Novo Place EC, a joint venture between Qingjian Realty, Santarli Realty and Heeton Holdings, has also achieved strong sales with 57% of its units sold in the first round of balloting in November. This was followed by another 137 units taken up in the second round of balloting for second-timers, bringing total sales to 444 units or 88.1% of the project. With an average price of $1,656 psf, Novo Place set a new benchmark for EC prices.
Apart from Tampines, the upcoming EC projects in Plantation Close and Jalan Loyang Besar, located in the West and Pasir Ris respectively, are also expected to perform well due to several factors such as dwindling supply of unsold EC units and favorable locations. The last EC launch in Pasir Ris was in 2013 at an average price of $800 psf, and with the lack of new EC launches in the area, pent-up demand is anticipated.
In total, the 2025 supply of new EC units is expected to double from the previous year, with the launch of 2,030 units. This was preceded by only one project in 2024 – Lumina Grand by City Developments at Bukit Batok West Avenue 5, which has sold 87% of its 512 units at an average price of $1,511 psf as of December 2024.
Despite the increase in supply, Gafoor believes that the strong demand for ECs will help to maintain the existing price benchmark. This is supported by the ongoing HDB resale price increase, which has raised the affordability ceiling for EC buyers. Additionally, the competition for EC sites has become more stringent, leading to higher land prices.