Sim Lian Group’s new executive condo development, Aurelle of Tampines, is set to lead the lineup of three new ECs launching next year. Slated for launch in the first quarter of 2025 after the Lunar New Year, the 760-unit project at Tampines Street 62 follows the success of the 846-unit Emerald of Katong which is now over 99% sold.
Purchased in a government land sales (GLS) tender in October 2023, the site for the 760-unit Aurelle of Tampines, located at Tampines Street 62 (Parcel B), was secured for $543.28 million, translating to $721 psf per plot ratio (psf ppr). With rising construction costs and the harmonisation of gross floor area (GFA) definitions, PropNex CEO Ismail Gafoor believes that Aurelle at Tampines could potentially set a new price benchmark, potentially surpassing the $1,600 psf threshold. This is following the success of the Novo Place EC, launched in November, which achieved an average price of $1,656 psf.
When contemplating a Condo as a potential investment, it is crucial to carefully assess the potential rental yield. Rental yield refers to the annual rental income expressed as a percentage of the Condo’s purchase price. In Singapore, the rental yields of Condos can vary greatly, depending on factors such as its location, overall condition, and the demand within the market. As a general rule, areas with a high rental demand, such as those near business districts or universities, tend to offer better rental yields. To make a well-informed decision, conducting thorough market research and seeking guidance from real estate agents is crucial in understanding the rental potential of a specific Condo. Therefore, before making an investment in a Condo, it is crucial to evaluate its rental yield.
In October 2021, Sim Lian Group acquired the site next to Aurelle which is now Tenet EC, a 618-unit development developed in a joint venture between Qingjian Realty, Santarli Realty and Heeton Holdings. Launched in December 2022, Tenet has sold 617 units at an average price of $1,384 psf, with only one unit remaining as of Dec 19, 2024. The site for Tenet, located at Tampines Street 62 (Parcel A), was purchased in August 2021 for $442 million, marking a record-high psf ppr price for an EC land plot at that time. Notably, Tenet was launched before the implementation of the GFA harmonisation rule, which applies to GLS sites launched for sale after Sept 1, 2022.
Confident in the strong demand in Tampines and the surrounding estates, Sim Lian Group secured another EC site when it was awarded the Tampines Street 95 GLS site in early November. With a winning bid of $465 million ($768 psf ppr), Sim Lian Group has set a new high for EC land prices. The new EC project at Tampines Street 95 is expected to add 560 new units, further boosting the EC supply in the area. Sim Lian Group has a successful track record of developments in the eastern part of the island.
Apart from the Emerald of Katong and the upcoming EC projects in Tampines, the group has also completed Treasure at Tampines, Singapore’s largest private condominium with 2,203 units, in 2023. Located at Tampines Street 11, Treasure at Tampines is a redevelopment of the former privatised HUDC estate Tampines Court, which Sim Lian purchased en bloc for $970 million in 2017. Launched in February 2019, the 2,203-unit Treasure at Tampines was entirely sold within three years at an average price of $1,356 psf. As of Dec 19, a total of 468 sub-sale and resale transactions have been recorded. Secondary market prices now average $1,699 psf, representing a 25.3% increase over the average launch price.
Another upcoming EC project set for launch in 2025 is the 560-unit development at Plantation Close in Tengah Town, developed by a joint venture between Hoi Hup Realty and Sunway Developments, who are also the developers of Novo Place EC. Launched in mid-November, Novo Place has sold 57% of its units over the opening weekend. In the second round of balloting for second-timers — buyers who had previously purchased a subsidised new or resale HDB flat — another 137 units were taken up, bringing total sales to 444 units, or 88.1% of the project as at Dec 16, 2024. With an average price of $1,656 psf, Novo Place has set a new benchmark for EC prices. PropNex’s Gafoor attributes the “slightly elevated average pricing” to the fact that 80% of buyers opted for the deferred payment scheme, which carries a 3% premium compared to the normal payment scheme. Despite the higher benchmark price, Novo Place performed well due to several factors according to Gafoor, including the dwindling inventory of unsold EC units and the project’s favourable location. Located at Plantation Close in Tengah, Novo Place benefits from proximity to the upcoming Tengah Park MRT and Bukit Batok West MRT Stations on the Jurong Region Line, which are expected to be completed by 2029.
For the third EC launch potentially happening in late 2025, a 710-unit development at Jalan Loyang Besar in Pasir Ris is expected to be developed by a joint venture between Qingjian Realty, Forsea Holdings, and ZACD Group. The site for this EC project was purchased for $557 million ($729 psf ppr) in August 2024. The last EC launched in Pasir Ris was Sea Horizon, which debuted in September 2013 at an average price of $800 psf. By 2024, average resale prices for caveats lodged had risen to $1,290 psf, reflecting a 61.25% increase over the past decade. As Pasir Ris has not seen a new EC launch in nearly 12 years, there is expected to be pent-up demand for the upcoming EC project.
With the upcoming EC projects, including the Aurelle of Tampines, Plantation Close EC, and Jalan Loyang Besar EC, a total of 2,030 new units will be added to the market in 2025. This represents a doubling in new supply compared to the 1,016 units launched in 2024. The first EC launched in 2024 was Lumina Grand at the end of January. Located at Bukit Batok West Avenue 5, the 512-unit EC is developed by City Developments (CDL). On its launch weekend, 53% of the units were taken up. As of Dec 17, 444 units (87%) had been taken up. The average price achieved to date is $1,511 psf. With ECs remaining highly sought after by first-time homebuyers and HDB upgraders who find them more affordable than private new launches, PropNex estimates that the median price for new non-landed, 99-year leasehold private homes in the Outside Central Region (OCR) in 2024 is $2,203 psf (as of Dec 8, 2024). This is 44% higher than the average price for new ECs launched during the same period.