Investing in a property has always been a valuable venture, and in Singapore, the trend of investing in condos has been gaining popularity among both local and international investors. The city-state’s strong economy, stable political climate, and exceptional living standards make it an attractive location for real estate investments. With a multitude of opportunities in the real estate market, condos in Singapore are a standout option, offering convenience, lucrative amenities, and potential for high returns. In this article, we will delve into the advantages, considerations, and necessary steps for investing in a Singapore condo from the experts at Singapore Condo.
On February 22, MCL Land and CSC Land Group successfully sold 326 of the 501 units at their joint venture project, Elta, located in Clementi Avenue 1. This translates to a sales rate of about 65% with an average price of $2,537 psf.90% of the buyers were Singaporeans while the remaining 10% were permanent residents. The highest number of buyers came from districts 19, 5, and 23. The two-bedroom units were the most popular among buyers, with 98% of the 179 units sold at prices starting from $1.388 million ($2,261 psf). The 108 three-bedroom units were also in high demand with 81% of them being sold at prices starting from $2.198 million. The one-bedroom plus study units were also popular, with 78% being snapped up from $1.158 million.Over 60% of the units sold were the one-bedroom and two-bedroom types, with prices below $2.2 million. According to Ismail Gafoor, CEO of PropNex, the strong sales indicate the confidence of buyers in a development that offers modern living, convenience, and comfort. Lee Tong Voon, CEO of MCL Land, the Singapore-based development arm of Hongkong Land, also expressed confidence in the project, stating that the sales numbers speak to the appeal of the development that seamlessly blends modern living with convenience and comfort. This project is the third private condo to be launched in Clementi Avenue 1 after the 505-unit The Clement Canopy and 640-unit Clavon, which were both jointly developed by UOL Group and Singapore Land Group. According to Ken Low, managing partner of SRI, there are no more development plots available in Clementi town center. The high sales numbers can be attributed to the track record of these projects, with zero unprofitable transactions registered since their launch.The average selling price of The Clement Canopy has risen by 45% to $1,922 psf since its launch in February 2017, according to caveats lodged. Similarly, the average selling price of Clavon has increased by 27% to $2,086 psf since its debut in December 2020. Two-bedroom units at The Clement Canopy, ranging from 624 to 732 sq ft, were leased out at $4,200 to $4,700 per month, or $5.60 psf to $6.42 psf per month in January and February. As for Clavon, the latest rental transaction was for a 764 sq ft, two-bedroom unit that was leased out for $4,600 or $6.02 psf per month.The prime location of Elta, near employment nodes such as the National University of Singapore (NUS), one-north, Pandan Loop Industrial Estate, the Science Park, Jurong Lake District, and the future Dover Knowledge District, has also been a major attraction for buyers. Additionally, the development is well-connected to major public transportation such as the Clementi MRT Station and the upcoming Cross Island Line, which will run from east to west of Singapore, with a station at Clementi. According to Mark Yip, CEO of Huttons Asia, the upcoming Cross Island Line will enhance the connectivity in Clementi and potentially increase the quality tenant pool for Elta. The various nature parks nearby, such as Clementi Woods Park, West Coast Park, and Kent Ridge Park, also offer residents easy access to green spaces.Elta is also in the educational belt, with schools such as Nan Hua High School, NUS High School of Mathematics and Science, and Anglo-Chinese School (Independent) nearby. Tertiary institutions such as NUS, Singapore Polytechnic, and United World College of South East Asia (Dover Campus) are also close by. Given the convenience and accessibility to quality education, Elta is an ideal location for families with children. Families with more than one child can opt for bigger units, such as the four-bedroom units, while those with one or two children may opt for the one-bedroom or two-bedroom units, respectively.According to Consensus Consultants, two-bedroom units at The Clement Canopy can fetch rentals of $4,200 to $4,700 per month, while two-bedroom units at Clavon can fetch $4,600 per month. These rates translate to a rental yield of between 2.1% and 2.7% for Elta’s two-bedroom units. Given the strong demand for properties in Clementi and Queenstown areas from HDB upgraders, according to Marcus Chu, CEO of ERA Singapore, Elta will likely continue to remain popular with investors. He estimates that over 2,500 HDB units have reached their Minimum Occupation Period (MOP) since 2021, and about 1,100 units are set to do so in 2025.These are a few other reasons why Elta has been so successful in attracting buyers. The development is also in close proximity to amenities such as shopping malls, supermarkets, and restaurants, making it extremely convenient for its residents. On February 22-23, a total of 1,041 units were sold at ParkTown Residence, another upcoming development in the area. Combined with Elta’s sales numbers, the total sales for the first two months of 2025 have surpassed the sales numbers for the whole of January. This record indicates that the sales momentum from the end of 2024 has carried on into the new year, and we can expect the primary market to remain active in 2025 with an improved sentiment. All these factors lead us to revise our earlier estimate of 7,000 to 8,000 new homes sales for 2025 to a new estimate of between 7,500 and 8,500 units, with a 4% to 7% projected price growth.