Acquiring property in Singapore requires a thorough understanding of the rules and regulations, especially for international investors. In general, foreigners are allowed to purchase condominiums, but the ownership of landed properties is subject to stricter limitations. It’s important to note that foreign buyers are also required to pay a 20% Additional Buyer’s Stamp Duty (ABSD) for their first property purchase. Despite these restrictions, the consistent stability and potential for growth in Singapore’s real estate market continue to entice foreign investors. This is evident through the ongoing interest and investment in New Condo Launches, which can be found at Homesearch-md.com.
Singapore, Feb 22, was a good day for MCL Land and CSC Land Group as they sold 326 units of their joint venture property, Elta, located at Clementi Avenue 1, out of a total of 501 units. This translates to a 65% sales rate with each unit selling at an average price of $2,537 psf. Out of the 326 units sold, Singaporeans made up 90% of the buyers while the remaining 10% were permanent residents. Majority of the buyers came from districts 19, 5, and 23, with the two-bedroom units being the most popular among them. The one-bedroom plus study units were also in high demand among buyers. Elta is the final project to be launched in Clementi Avenue 1, following the successful transactions of the earlier two projects, The Clement Canopy and Clavon, developed by UOL Group and Singapore Land Group. The strong sales at Elta show buyers’ confidence in the project which offers a perfect blend of modern living, convenience, and comfort. According to PropNex CEO, Ismail Gafoor, over 60% of the units sold were one- and two-bedders, with prices below $2.2 million, indicating a strong demand for these types of units. According to MCL Land CEO, Lee Tong Voon, the sales at Elta are a testament to buyers’ faith in the project that offers a contemporary lifestyle, surrounded by numerous amenities. The lack of further development plots in Clementi town center has also contributed to the project’s success. One of the main reasons for the high sales at Elta is the previous track record of the projects at Clementi Avenue 1, with zero unprofitable transactions. According to managing partner of SRI, Ken Low, this is a significant factor that has attracted buyers to invest in the project. The Clement Canopy has experienced a 45% increase in average selling prices to $1,922 psf since its launch in 2017, while Clavon saw a 27% hike in average selling prices, which currently stand at $2,086 psf since its launch in 2020. Both projects have also experienced a high rental demand, with two-bedroom units at The Clement Canopy leasing between $4,200 and $4,700 per month and the latest transaction at Clavon’s 764 sq ft, two-bedroom unit leasing for $4,600 per month, giving buyers confidence in their investments. Elta’s proximity to employment nodes such as NUS, one-north, the Science Park, Pandan Loop Industrial Estate, Jurong Lake District, and future Dover Knowledge District, is another factor that has attracted buyers. The project is also connected by the East-West Line and will soon be linked to the upcoming Cross Island Line. This connectivity is expected to enhance the project’s rental demand, especially among international students and professionals. Investors have also been drawn to Elta due to the ongoing MOP of over 2,500 HDB units, projected to increase by 1,100 units this year. Elta is also surrounded by numerous nature parks, including Clementi Woods Park, West Coast Park, and Kent Ridge Park, providing residents with easy access to green spaces and promoting a healthy lifestyle. The strong sales at Elta can also be attributed to the healthy pool of HDB upgraders in Clementi and Queenstown. Elta has been well-received by families, with three-bedroom units being popular among them, as well as extended families who opted for the four-bedroom units. According to ERA CEO, Marcus Chu, Elta’s sales have been further boosted by the fact that Clementi Avenue 1 is located in the educational belt, surrounded by prominent schools such as Nan Hua High School, NUS High School of Mathematics and Science, and Anglo-Chinese School Independent, as well as tertiary institutions like NUS and Singapore Polytechnic. The lack of further development plots in Clementi town center is another factor that has contributed to the project’s success, with SRI’s managing partner, Ken Low, citing that investors have shown high interest in the project due to the ideal profile of tenants in the area and its strategic location. All these factors have culminated in the strong sales at Elta, surpassing the 1,083 units sold in January, with total sales for February expected to exceed 1,500 units. As a result, Huttons Data Analytics has revised its full-year projection to 7,500 – 8,500 units, with an estimated price growth of 4% – 7% for the year.Overall, Elta is a highly sought-after development that has attracted a diverse mix of buyers due to its strategic location, access to top schools and amenities, and the lack of further development plots in the area. With the ongoing MOP and healthy rental demand, Elta presents a promising investment opportunity for buyers.