Copen Grand executive condominium (EC) in Tengah Town opened for e-application for second-time buyers from November 17 to 23. Sales booking commenced on the morning of November 26, and all the remaining 146 units were taken up before 1 pm. Transacted prices for the units sold range from $1.09 million for a two-bedroom plus study to $2.17 million for a five-bedroom premium unit.
"Copen Grand is now fully sold, just one month after its launch," says a spokesperson on behalf of joint venture partners City Developments Ltd (CDL) and MCL Land, which is a subsidiary of Hongkong Land Holdings.
"That makes Copen Grand the best-selling EC in 2022,” says Mark Yip, CEO of Huttons Asia. “This is the first EC project to sell out during the second balloting.”
Under the prevailing EC regulations, only 30% of the units in an EC project can be allocated to second-time buyers during launch. For Copen Grand, this quota was reached when the project was launched on Oct 22, where 73% of the units were taken up at an average price of $1,300 psf. Units purchased under the deferred payment scheme (DPS) were priced at 3% higher. As of Nov 20, a total of 493 units (77%) were taken up at an average of $1,337 psf, based on caveats lodged.
As the first EC in Tengah Town, Copen Grand has the first-mover advantage with unrivalled accessibility to three MRT stations and proximity to the future Tengah Integrated Transport Hub and Tengah Boulevard Bus Interchange. It is Singapore's first BCA Green Mark Platinum Super Low Energy luxury EC.
“Copen Grand has been designed with sustainability from the start, with buyers assured that their homes are future-proofed,” says Huttons Asia’s Yip. “Major employment centres in Jurong East Regional Centre and Jurong Innovation District are taking shape.” Copen Grand will be well served by the Jurong Region Line, which will bring residents to both the regional centre and innovation district.
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Apart from Copen Grand, CDL’s pipeline includes another EC with around 510 units in the same vicinity at Bukit Batok West Avenue 5, according to the developer.
"The strong sales for this EC project is partly due to the availability of the DPS," says Nicholas Mak, head of research & consultancy, ERA Realty Network. "In the face of rising interest rates, about 70% of the buyers of EC units are taking up the DPS, where the buyers do not need to draw down their home loan immediately after they purchase their EC units. By taking up the DPS, homebuyers are transferring the interest rate risk to the developer."
Even though buyers have to pay a higher price for their EC units under the DPS - in Copen Grand's case, 3% higher - seven out of 10 still prefer the DPS, indicating that they expect further increases in mortgage rates in the next few years before taking their keys for their EC units, notes Mak.
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The strong sales at Copen Grand should bode well for the next EC to be launched, namely the 618-unit Tenet, says Bruce Lye, managing partner and founder of SRI.
Located at Tampines Street 62, Tenet is developed jointly by Qingjian Realty, Santarli Realty and Heeton Holdings. The EC project in the east opened for e-application on November 12, with sales booking scheduled on December 3.
Given Tenet’s location in a mature estate and near the future Tampines North integrated transport hub on the Cross Island Line, Huttons Asia's Yip sees strong interest in the project and expects it to do well.
"The strong sales for this EC project is partly due to the availability of the DPS," says Nicholas Mak, head of research & consultancy, ERA Realty Network. "In the face of rising interest rates, about 70% of the buyers of EC units are taking up the DPS, where the buyers do not need to draw down their home loan immediately after they purchase their EC units. By taking up the DPS, homebuyers are transferring the interest rate risk to the developer."
Even though buyers have to pay a higher price for their EC units under the DPS - in Copen Grand's case, 3% higher - seven out of 10 still prefer the DPS, indicating that they expect further increases in mortgage rates in the next few years before taking their keys for their EC units, notes Mak.
This story was first published on EdgeProp.sg
