More Executive Condominiums (ECs) in the pipeline to test new high of $1,700 psf

On Oct 29, joint developers Hoi Hup Realty and Sunway Developments unveiled indicative starting prices for the 504 units at their upcoming executive condominium (EC) project, Novo Place. Prices start from $1.298 million for an 872 sq ft, two-bedroom unit to $1.779 million for a 1,163 sq ft, four-bedroom-plus-study unit, translating to an indicative price range of $1,489 to $1,545 psf.

Given the land cost of $703 psf per plot ratio (psf ppr) paid by the joint-venture partners in September 2023, selling prices for Novo Place are expected to range between $1,500 and $1,600 psf.

Novo Place is also the first EC project to be affected by the harmonisation of gross floor area (GFA) definitions. The project is expected to set a new benchmark for EC launch prices.

New Record Land Prices, New Price Thresholds

Novo Place’s benchmark price could well be surpassed by Sim Lian Group’s upcoming project in Tampines. According to the tender results announced on Oct 24, the developer placed the top bid of $475 million or $768 psf ppr for the EC site at Tampines Street 95.

This bid broke the previous land price record of $729 psf ppr set in August by a consortium led by Qingjian Realty for an EC site at Jalan Loyang Besar in Pasir Ris.

The Tampines Street 95 site, just a stone's throw from Tampines West MRT Station on the Downtown Line, could yield 560 new EC units. Based on land prices of $729 psf ppr for Jalan Loyang Besar and $768 psf ppr for Tampines Street 95, selling prices for these upcoming EC launches could reach $1,700 psf.

EC Resale Prices Cross $1,600 psf

Resale prices of completed EC projects, such as the 531-unit Hundred Palms Residences, have already surpassed $1,600 psf. In December 2023, an 883 sq ft unit was transacted at a high of $1,677 psf.

The 573-unit Esparina Residences along Compassvale Bow in Sengkang, which was launched in 2010 and completed in 2013, has also seen units changing hands at over $1,600 psf this year. Last November, a 1,367 sq ft unit at Esparina Residences was sold for $1,756 psf, based on caveats lodged.

Similarly, recent resale prices at the 670-unit The Tampines Trilliant have broken through $1,500 psf, with a 1,012 sq ft unit hitting a peak of $1,670 psf in October. The Tampines Trilliant was launched in 2012 and completed in 2015.

A new generation of ECs launched during the Covid-19 era (2020–2021) and completed this year have also set new benchmarks in terms of product offerings. These include Parc Canberra and Parc Central Residences by Hoi Hup and Sunway Developments, as well as Parc Greenwich by Frasers Property.

Steady Pipeline of New ECs Rolling Out

Two new ECs were launched this year: the 512-unit Lumina Grand and Novo Place. Next year, another two EC projects are slated for launch: Sim Lian Group’s 760-unit Aurelle of Tampines at Tampines Street 62, and Hoi Hup-Sunway’s EC at Plantation Close (Parcel B) in Tengah.

Another two ECs are slated to launch in 2026: the EC sites at Jalan Loyang Besar in Pasir Ris and Tampines Street 95.

These upcoming EC projects are distributed across various parts of the island. With more than 4,000 flats reaching their Minimum Occupation Period (MOP) between 2024 and 2026 in Bukit Batok and Tampines, there will be healthy demand from upgraders.