Investing in a condo has many advantages, one being the opportunity to use the property’s value for future investments. Numerous investors use their condos as collateral to secure extra financing for new ventures, consequently diversifying their real estate holdings. This tactic has the potential to increase profits, but it’s essential to have a solid financial plan in place and carefully consider the potential consequences of market fluctuations. Condos offer a unique opportunity for investment and growth in the real estate market.
Sentosa Cove house with Gaggenau and Sub-Zero appliances for rent at $35K The launch of Aurea in the highly sought-after Core Central Region (CCR) has set a new benchmark in luxury residential developments, with an impressive 30% of its 78 units sold at an average price of $3,005 psf in just one weekend.Located in the prime Downtown Core precinct, Aurea is a joint project by renowned developers Far East Organization and Perennial Holdings. The 45-storey project was designed by DP Architects with a unique “hanging garden concept”. It is also the first new private condominium to be connected to a mixed-use development that has been sold en bloc and conserved, now known as Golden Mile Singapore.A total of 23 units were sold in the first phase of the launch, which included a mix of two- to four-bedroom apartments from levels 4 to 16. This translates to an impressive 30% sales rate based on the 78 units released for sale. Aurea boasts a total of 188 units across its 45 storeys, with units ranging from two- to six-bedrooms.The overwhelming interest in Aurea is a testament to its prime and highly sought-after location in the CCR, known for its luxurious homes and central location. The joint developers have reported that 83% of buyers are Singaporeans, with the remaining 17% being permanent residents from Malaysia. This accounts for about 12.2% of total units, which is a strong sales performance considering the current market situation.According to Mark Yip, CEO of Huttons Asia, CCR projects typically sell between 10% to 30% of their units during the launch weekend as they tend to attract fewer HDB upgraders compared to suburban projects. However, the take-up rate for Aurea can be attributed to its unique design, prime location and strong lifestyle and investment potential.Proprietary CEO Ismail Gafoor notes that Aurea’s sales are encouraging, especially in the current market where sales for CCR projects have been lacklustre since the tightening of the Additional Buyer’s Stamp Duty (ABSD) measure in April 2023. He explains that the doubling of the ABSD rate for foreigners to 60% has significantly cooled interest in CCR homes. In fact, developers had the lowest sales recorded for new CCR private homes in 2024, with only 378 units sold – a sharp decline of 74% from 1,454 units sold in 2023.Nevertheless, Gafoor believes that the take-up rate for CCR homes will progressively improve, as CCR projects tend to attract interest over a longer period of time, usually selling units steadily over many months, unlike RCR and OCR projects which tend to achieve higher sales numbers during their launch weekend. He also notes that CCR homes are targeted towards a niche market seeking luxury living and finer experiences, thereby accounting for the gradual sales momentum.The joint developers have reported that the two- and three-bedroom apartments in the Prestige Collection have been the most popular among buyers, accounting for 74% of sales. These apartments are known for their functional and well-designed spaces, while also offering strong investment potential for owners.The remaining units in the Sky Villa Collection comprise of 18 five-bedroom apartments, with sizes of up to 3,251 sq ft, as well as two six-bedroom penthouses, with sizes of up to 8,816 sq ft. These large-format homes, located in the downtown area, are highly sought-after by buyers, with units offering expansive balconies, providing views of both Marina Bay and Kallang Basin.Many experts believe that the narrowing price gap between CCR and RCR residential properties in recent years is driving an increase in interest and sales for luxury projects such as Aurea. According to Ken Low, managing partner of SRI, the price difference between CCR and RCR properties used to average around 40% in the last 10 years, but it has now narrowed to just 20%. This trend, together with the expected rise in luxury project launches this year, is expected to drive up prices for CCR homes.In conclusion, Aurea’s strong sales performance during the launch weekend is a testament to its prime location and unique design, which sets a new benchmark for luxury living in the CCR. With ongoing urban renewal efforts in Singapore, such as the Greater Southern Waterfront and Kallang Alive master plan, combined with the completion of major infrastructural projects, Aurea is primed for strong growth and return on investment for its buyers.