SINGAPORE - The first executive condominium (EC) project in Tengah Town, Singapore’s first smart and sustainable precinct, saw 465 units, or 73 per cent of the project, sold on its launch day on Saturday.
Developed by City Developments and MCL Land, the units went for an average price of $1,300 per sq ft (psf), with an additional 3 per cent applied to those sold under the deferred payment scheme.
All unit types were well received by home buyers, with the four-bedroom deluxe units fully sold, the companies said on Sunday.
The strong sales at Copen Grand – the first residential project launched since the latest round of property cooling measures – show the strong underlying demand for ECs, especially from HDB upgraders, said market experts.
The 639-unit EC saw the maximum 30 per cent of the project which can be allocated to second-time buyers during its launch fully taken up.
“We expected it to do well, and this performance should give some confidence to the market,” said Ms Wong Siew Ying, PropNex Realty’s head of research and content.
She added that buyers are mindful of the large price gap between new EC and new mass market launches.
Copen Grand’s average launch price of $1,300 psf “is a good value proposition, seeing that mass market new private condo prices have crossed the $2,100 psf mark in recent launches – representing a price gap of about $800 psf”.
EC buyers can also opt for the deferred payment scheme and may be eligible for a Central Provident Fund (CPF) housing grant of up to $30,000.
Those who are upgrading from Housing Board flats to a new EC also need not pay the additional buyer’s stamp duty upfront.
Mr Mark Yip, chief executive of Huttons Asia, said the recent property cooling measures have little impact on the demand for ECs, as buyers on the deferred payment scheme can use the construction period to build up their savings.
Based on Huttons’ estimates, a couple earning up to $14,000 a month and taking a 75 per cent loan over 30 years need 3.1 years of contribution to their CPF to make up for the lower loan amount.
The deferred payment scheme also allows buyers of ECs to tide over the current high interest rate environment, Mr Yip said.
Other factors driving demand were limited new EC stock – the last EC launch in the vicinity was iNZ Residence in 2017 – as well as Copen Grand’s proximity to three upcoming MRT stations and two neighbouring hubs, Jurong Lake District and Jurong innovation District, said Mr Yip and Ms Wong.
Copen Grand units were priced from $1.08 million for a two-bedroom plus study unit, to $1.18 million for a three-bedroom deluxe unit, to $1.88 million for a five-bedroom premium unit.
Unit sizes range from 807 sq ft for a two-bedder plus study unit, to 1,722 sq ft for a top-floor five-bedder unit.
Interested second-time buyers who were unable to purchase a unit at Copen Grand during the launch period can make their bookings for the remaining units one month later. E-applications for second-time buyers will take place from Nov 17 to 23, with sales booking to start on Nov 26.
The next major EC launch expected is the 618-unit Tenet in Tampines in November.