City Developments Ltd. (CDL)—controlled by billionaire Kwek Leng Beng—is proceeding to launch a suburban residential condominium project in the western part of Singapore, reflecting its confidence property demand will be sustained despite the government’s fresh property curbs.
Marketing for the Copen Grand—a 639-unit executive condominium (EC) project which is being jointly developed by City Developments with Hongkong Land unit MCL Land—will start tomorrow, about a week since authorities tightened housing loan limits to ensure borrowers can afford higher rates. The government has been trying to rein in skyrocketing property prices in Singapore, which has defied a global real estate downturn as foreign buyers snap up luxury apartments in the city-state seen as a safe haven by investors.
Copen Grand will be the first EC to rise in the upcoming western Singapore town of Tengah, which means eligible buyers can get a housing grant of up to S$30,000 ($21,000) from the government. “While homebuyers will take into consideration the impact of the recent policy changes, ECs are tailored for a select group of eligible buyers who have the special privilege of purchasing a home with an array of full condo facilities,” according to CDL. “With the limited supply of new ECs coming on stream, it is the right time to launch.”
The government housing grant for Copen Grand will come in handy for eligible homebuyers (Singapore citizens and permanent residents with a maximum household income of S$16,000), with prices starting at S$1.08 million for a two-bedroom unit with a study area and as much as S$1.88 million for a five-bedroom unit.
“Copen Grand is the first EC to be built in Tengah Town, Singapore’s pioneering smart and sustainable town,” Rob Garman, CEO of MCL Land, said in a statement. “Buyers stand to gain from first-mover advantage in the new future-forward precinct.”
CDL and MCL are building 12 blocks of 14-story residential towers in Tengah Garden Walk at the heart of Tengah Town, which the government aims to develop as a smart neighborhood with connectivity to the nearby business district and advanced manufacturing hub in the Jurong area.
“Copen Grand is thoughtfully designed as a smart and resource-efficient project,” Sherman Kwek, CEO of CDL, said in a statement. “It offers exceptional convenience as it is located within walking distance of three upcoming MRT stations, which is unique for an EC.”
Copen Grand is the second project to be launched by the partners this year. In May, the duo sold 77% of Piccadilly Grand, a 407-unit condo project on Northumberland Road, about four kilometers east of the Raffles Place central business district, within two weeks after it was marketed.
Singapore home prices have continued to climb despite rising mortgage rates and the government’s property curbs, with private property values rising 3.4% in the third quarter compared to the previous three months, according to flash estimates released by the Urban Redevelopment Authority on Monday.
To cope with robust housing demand, developers have been replenishing their landbank. Last month, a wholly owned subsidiary of CDL submitted the highest bid of S$336 million for a 178,936 square feet (16,623 square meters) plot in the western Singapore town of Bukit Batok. The company plans to build 10 blocks of 12- to 13-story apartment buildings with a total of 510 residential units on the property.