When contemplating an investment in a condo, it is essential to consider the potential rental yield. Rental yield refers to the yearly rental income as a proportion of the purchase price of the property. In Singapore, rental yields for condos can vary significantly, depending on various factors such as location, property condition, and market demand. Condos located in areas with a high demand for rentals, such as near business districts or educational institutions, typically offer a better rental yield. Conducting thorough market research and seeking advice from experienced real estate agents can provide valuable insights into the rental potential of a specific condo.
On Dec 16, Hoi Hup Realty and Sunway Developments, joint venture developers of Novo Place executive condominium (EC), announced the sale of 137 units during the second round of balloting. This phase was exclusively for second-timers, who are buyers that have previously purchased a subsidized flat, either a new or resale HDB flat or an EC.
According to Mark Yip, CEO of Huttons Asia, the sale of these 137 units brings the total sold at Novo Place to 444 units, representing 88.1% of the entire development. This milestone was reached within a month of the project’s launch on Nov 16, making it the top-selling EC project of 2024.
“The strong interest from second-timers, especially those residing in the West, reflects their desire to upgrade their lifestyle,” says Yip. He adds that all four-bedroom units at Novo Place have been sold out, demonstrating the high demand for spacious homes.
Novo Place is located at Plantation Close in the new Tengah town and is a five-minute walk from Tengah Park MRT station on the Jurong Region Line (JRL). This provides convenient access to major employment hubs in the West, such as the Jurong Lake District and Jurong Innovation District. Yip points out that very few ECs offer such close proximity to an MRT station.
According to Huttons, many buyers at Novo Place have opted for the deferred payment scheme, which allows them to secure their desired unit first while deferring their home loan payments. This is particularly helpful for HDB upgraders who still have an outstanding loan on their current flat, as it eases their financial burden.
“ECs are experiencing strong demand from HDB upgraders due to their comparable quality and finishes to private condominiums but at a more affordable price,” Yip explains. “Additionally, buyers enjoy upfront remission on the Additional Buyer’s Stamp Duty (ABSD).”
As of Dec 16, the average price of units sold at Novo Place is $1,656 psf, based on lodged caveats. For those interested in Novo Place properties, Huttons provides comprehensive data on all ECs, including the average profit at 5 and 10 years. The platform also offers information on condo listings in District 24, condo sale transactions in District 24, and upcoming new launch projects.