CITY Developments Ltd (CDL) and MCL Land will open applications for their Copen Grand executive condominium (EC) project in the upcoming Tengah area on Friday (Oct 7), with prices starting from S$1.08 million for a two-bedroom unit.
The Copen Grand EC will be the first residential project to be launched in the wake of fresh market cooling measures just announced by the government last week, when tighter limits on housing loans came into effect.
Units on offer at the Tengah Town development range from 807 square feet (sq ft) for a two-bedroom plus study to 1,722 sq ft for a top-floor five-bedroom premium unit. The apartments are priced from S$1.08 million for a two-bedroom plus study, S$1.18 million for a three-bedroom deluxe, S$1.28 million for a three-bedroom premium, S$1.48 million for a four-bedroom deluxe, S$1.58 million for a four-bedroom premium and S$1.88 million for a five-bedroom premium.
The project is being developed jointly by CDL and MCL Land, and will be the two companies’ second joint venture (JV) after the May launch of Piccadilly Grand, a 99-year-leasehold private residential project.
Asked why CDL went ahead with plans for the Copen Grand launch instead of holding back after the new cooling measures kicked in, a CDL spokesperson said: “We are proceeding with the launch plans for Copen Grand, following the fulfilment of the 15-month time bar (from our acquisition of the site). 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 – with qualifying first-time buyers being able to enjoy a CPF housing grant of up to S$30,000.”
CDL also pointed to the limited supply of new ECs coming onstream, saying “it is the right time to launch”.
Copen Grand is the first EC to be built in the Tengah Town area, envisioned as Singapore’s first smart and sustainable precinct. It is also the first private residential project to qualify for the BCA Built Environment Transformation Gross Floor Area incentive scheme.
In a press release issued on Thursday, CDL group CEO Sherman Kwek said: “Copen Grand is thoughtfully designed as a smart and resource-efficient project. It offers exceptional convenience as it is located within walking distance of three upcoming MRT stations, which is unique for an EC.”
Rob Garman, chief executive of MCL Land, said that he believes buyers will “stand to gain from first-mover advantage in the new future-forward precinct”.
Garman also expressed confidence that Copen Grand will achieve a similar response to that of Piccadilly Grand – the company’s first JV project with CDL.
Over the launch weekend of Piccadilly Grand in early May, CDL and MCL Land sold 315 out of its 407 units, or 77 per cent, at an average selling price of S$2,150 per square foot.
The opening of e-applications for Copen Grand comes just after the latest set of property cooling measures announced by the government on Sep 29 to ensure prudent borrowing and moderate demand amid a rising interest rate environment.
As part of the measures, the Monetary Authority of Singapore will raise the medium-term interest rate floor used to compute the total debt servicing ratio (TDSR) and mortgage servicing ratio (MSR) for residential and non-residential property by 0.5 percentage point.
Commenting on the new measures the day after they were announced, PropNex Realty chief executive Ismail Gafoor said that he believed the increase in the medium-term interest rate could potentially “weigh heavier” on the sale of new ECs, as buyers will be subjected to a stricter MSR of 30 per cent – as opposed to 55 per cent for private home buyers under the TDSR.
Despite the tighter limits on loans for ECs which have always been in place under the stricter MSR for this hybrid housing segment, ECs continue to appear attractive to HDB upgraders as the prices of resale flats have continued to climb over the past two years.
According to caveat data from URA Realis, prices of new ECs have been found to grow at a slower pace than resale flats at 26.2 per cent as opposed to 29.3 per cent.
Sales bookings for Copen Grand will start on Oct 22.