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On Feb 22, MCL Land and CSC Land Group successfully sold 326 out of 501 units at Elta, their joint venture project located at Clementi Avenue 1. This translates to a sales rate of approximately 65%, with an average price of $2,537 per square foot.
The majority of buyers, making up 90%, were Singaporean citizens, while the remaining 10% were permanent residents. Most of the buyers, particularly from districts 19 (comprising of Hougang, Serangoon, Sengkang, Punggol and the northeast region), 5 (including Buona Vista, Clementi, Dover, and Pasir Panjang) and 23 (covering Bukit Batok, Bukit Panjang, Choa Chu Kang, Hillview and Dairy Farm) districts, showed strong interest in the development.
The two-bedroom units were the most popular among buyers, with 98% of the 179 units sold at an average price of $1.388 million ($2,261 per square foot). About 81% of the 108 three-bedroom units were also sold, priced from $2.198 million onwards. The one-bedroom plus study units were also highly sought after, with 78% of the 118 units sold from $1.158 million.
Elta offers a mix of one- to four-bedroom units, with sales of over 60% from the one- and two-bedroom units priced below $2.2 million. According to Ismail Gafoor, CEO of PropNex, this indicates buyers’ confidence in a development that offers a seamless blend of modern living and convenience.
The CEO of MCL Land, Lee Tong Voon, adds that the strong sales reflect buyers’ confidence in the development and its ability to offer modern, convenient and comfortable living. MCL Land is the Singapore-based development arm of Hongkong Land.
Elta is the last residential project to be launched on a government land sales (GLS) site at Clementi Avenue 1. As Ken Low, managing partner of SRI points out, the success of the previous two developments, 505-unit The Clement Canopy and 640-unit Clavon, developed by UOL Group and Singapore Land Group, have played a significant role in the strong sales at Elta. He adds that the projects at Clementi Avenue 1 have had a track record of zero unprofitable transactions, which has further boosted buyers’ confidence.
Based on caveats lodged, the average selling price of The Clement Canopy has increased by 45% to $1,922 per square foot since its launch in February 2017. Meanwhile, the average selling price of Clavon has gone up by 27% to $2,086 per square foot since its debut in December 2020.
Elta is strategically located near various employment hubs 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. In addition to being close to the Clementi MRT Station on the East-West Line, the upcoming Cross Island Line, which connects the east to the west of Singapore, will also have a station at Clementi. As Mark Yip, CEO of Huttons Asia, points out, this enhanced connectivity will not only benefit residents but also increase the quality of potential tenants at Elta.
Mark Yip notes that the one- and two-bedroom units at Elta are highly sought after among investors, while three-bedroom units are popular among families. With Clementi’s superb connectivity and rich amenities, the area remains a highly sought-after destination for both homeowners and investors, says Qian Liang Zhong, chairman of CSC Land Group, a subsidiary of China Construction (South Pacific) Development Co.
Clementi Avenue 1 is situated in an education 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 in close proximity, making it an ideal location for families with children. According to Ken Low from SRI, this factor has contributed to the strong sales at Elta since it allows families to stay in the area for a good 15 years – the duration of a child’s education.
Given the profile of tenants in Clementi Avenue 1 – primarily international students and professionals – projects in this area are popular among investors. As Low from SRI explains, there are no further development plots in the Clementi town center, making it highly attractive for investors. To illustrate, two-bedroom units at The Clement Canopy, ranging from 624 to 732 per square feet, have been leased at $4,200 to $4,700 per month between January and February, while the latest rental transaction for a two-bedroom unit at Clavon was for a 764 per square feet unit that was leased for $4,600 – or $6.02 per square foot per month.
Elta has also benefited from the healthy pool of HDB upgraders in Clementi and Queenstown, says Marcus Chu, CEO of ERA. He adds that there have been over 2,500 HDB units that have reached their Minimum Occupation Period since the beginning of 2021, with an additional 1,100 units expected to do the same this year.
The development’s proximity to nature parks – such as Clementi Woods Park, West Coast Park, and Kent Ridge Park – offers residents easy access to green spaces, which further adds to its appeal. The launch of the 1,193-unit ParkTown Residence was also held on the Feb 22-23 weekend, with 1,041 units sold. Collectively, Elta and ParkTown Residence have sold over 1,300 units, surpassing the 1,083 new homes sold in the entire month of January.
PropNex CEO Ismail Gafoor expresses his confidence in the primary market, noting that the sales momentum at the end of 2024 has carried into the new year. He further adds that this momentum is likely to continue in the coming year, amid improved market sentiment. Huttons Data Analytics estimates developers’ sales in February to exceed 1,500 units, with the total sales for the first two months of the year expected to be between 2,500 and 2,700 units. According to Huttons, this is equivalent to 39% of the total new home sales of 6,469 units in 2024. As a result, Huttons has revised its full-year projection for 2025 to between 7,500 and 8,500 units – up from its earlier estimate of 7,000 to 8,000 units – with a full-year price growth of 4% to 7%.