Luxury Condo For Sale Singapore Remains Strong
Luxury condo for sale Singapore is known to be a good investment as these types of properties stood out from the rest of the private real estate market in recent years. Various cooling measures in place since 2009 affected private property ownership in negative ways as demand for residential property fell sharply.
Cooling measures introduced and fine-tuned to prevent the forming of assets bubble as seen in the United States in 2008, and that moves did create some problems in the fast-growing residential property industry and businesses related to it.
The president of the Real Estate Developers’ Association of Singapore (Redas), Augustine Tan, addressed the participants of the Redas Property Market Update Seminar 2016 and said, “With the cooling measures still in force, the real estate market continues to face disruptive forces on multiple fronts – from weak demand and hefty supply to manpower constraints and challenging business environment.”
While Mr Tan’s outlook on the future of private property ownership might seem less than desirable, transactions of private condominiums have risen steadily in recent months as buyers return to the market looking for a luxury condo for sale in Singapore.
If one would look at the global property market will notice that luxury condo are about 40% behind city such as Hong Kong. Moreover, with the right fundamental, we enjoy in this country makes it an ideal option for the investor to multiple or preserve their wealth through buying property here.
While there have not been many new condo projects launched in the central core region because of all the restrictions, there are two projects that stand out namely: Gramercy Park and the OUE Twin Peaks.
Two New Projects
There have been more than 100 units sold in the second quarter for these two projects, which is considered quite remarkable for a luxury project given the cooling measures that are still in place. The sales volume suggest that the investors and home buyers are aware of the potential value of the projects.
Developers are seizing this opportunity to be on the investor’s side offering irresistible offer for a limited time. In today’s buyer’s market, it is easier to find reasonably priced units such as Twin Peak and Gramercy Park. Given the current selling price, any new government land sales nearby developers will have to bid higher hence will have to sell the project at a much higher price to break even.
Note that such “Golden Window” is open for a limited period due to several factors, prices had fallen to 2013 prices. Many developers want to empty unit to avoid hefty penalty.
When you buy a condo, one of the biggest concern is the land size. Take Ardmore Three, for example. These units are priced similarly to Twin Peak and Gramercy Park in terms of per square foot, yet Ardmore Three is on a smaller plot of land if we do not look at the tenure of the land. Ardmore Three is less than half the land size of Twin Peaks and one-third the size of Gramercy Park.
If you break down by cost per square foot, Ardmore Three will start out as $800 more expensive than Twin Peaks and $1,000 higher than Gramercy Park. Gramercy Park is an estate located along Grange Road in Singapore’s prime District 10. At Gramercy Park, each residential unit has its individuality weaved into its design and layout and boasted top-quality finishes.
Buying at a higher price also meant greater risk in uncertain times. You can save the money on buying leasehold condo for other investment. Buying at higher psf will, in turn, reduce your rental ROI.
This luxury condo in Singapore is highly sought after because it is less dense compared to nearby condos. Gramercy Park unit has its private lift, so you do not share corridors with many other residents. This condo sits on a larger piece of land and building on less than 20% of the landing, which makes it more exclusive. The price of Gramercy Park condos developer prepares to launch around $4,000 psf. Developers prices came down to below $3,000 psf under market pressure.
Gramercy Park is perfect for ultra high net worth individual seeking to make a sound investment that pays off in a few years.
OUE Twin Peaks
OUE Twin Peaks is located in the heart of the city and provides for easy access to luxury boutiques. The two 36-story towers feature 462 residential units that will all be furnished locally with designer fittings worth as much as $30,000 total.
The success of Twin Peaks is due, in large part, to deferred payment schemes enacted by the developers of the project. Deferred payment plans let owners put off the buyer’s payment until later when loan-to-value ratios may change. Investors have up to three years to complete the transaction. In the meantime, they can find renters for the luxury condo after making the initial down payment.
The deferred payments delay some of the risks off of investors who want to try out the rental market in this luxury condo in case demand eases in three years. For example, when a landlord charges $3,300 per month in rent, the return on investment potentially be as high as 13 percent or more depending on top of the appreciation of the property in future years when new GLS on the plot of land in front of OUE Twin Peaks.
Prices are already near rock bottom for this luxury condo in Singapore, in fact, we are backtracking to 2013 prices. Take advantage of this golden opportunity open now because it may not happen again if cooling measures lifted, or developer had paid the penalty when due. Now is your chance to get in on the three years ago the price for a new luxury condo.
Both of the above mention projects are excellent examples of luxury condos in Singapore now. These are just two pieces of the condo puzzle all over Singapore. Prices will still stay low due a bottoming out of the property market, but wouldn’t last long. Now has been the perfect time to buy, and developers may even offer you a deferred payment scheme or further discount. You also have to take into account government regulations, such as the TDSR and other cooling measures, to see if you have the financial strength to find the condo you deserve.
A real estate professional can guide your decisions. Older condos have many potentials. Consider the deferred payment scheme from Marina Collection by the waterfront. Prices are 30 percent lower than when developers launched the building, and you have three years to pay off your deferred payment scheme here. Real estate professionals know how these plans work and what happens when developers want someone to move in quickly.
An experienced real estate salesperson, such as Dylan Tan, can help you find the luxury condo that potentially contributes to multiple your wealth. He can assist in determining if you meet eligibility requirements, arrange a tour and show you what luxury condo properties best suit your portfolio. Contact Dylan today through email or by calling 9456-7022