Some projects in the Core Central Region (CCR) have been of the rage of late with the Cuscaden Reserve and 19 Nassim moving 68 units and 12 units respectively in the past 2 weeks.
Given that foreigners have to incur 60% ABSD, many might be wondering why sales in CCR are so brisk. This is due to the correct entry price which is at an affordable level to many, especially in the CCR segment.
With CCR's new launch price averaging at $3,155 psf, the average psf for the units sold at Cuscaden Reserve and 19 Nassim, was only in a lower range of $2,8xx - $2,9xx psf. This is the key reason many buyers decided to take action to secure a unit in CCR.
The 3 factors to seriously consider if you are looking to secure a property in CCR are:
1. Land bid price
2. Price gap
3. Correct entry price
1. Land Bid Price
The prices of government land sale (GLS) in the CCR have been increasing over the years. And if you take a look at today's price of $2,620 psf ppr, if a developer wants to make a profit of just 10%, they would have to sell it at at least $2,900 psf range - excluding other cost such as construction and furnishing.
2. Price Gap
If you take a look at the price gap between a freehold and a 99-year leasehold in the CCR, back in 2019 the gap was a staggering 31%, but now it's only a difference of 1.2%. Given that the price difference is only 1.2%, would you rather get a freehold property that you could own forever or a 99-year leasehold?
3. Correct Entry Price
Looking at the new launch prices in the CCR, the range is between $2,8xx psf to $3,4xx psf. The ideal price range to enter the market for a relatively safe purchase would be a property selling at the lower end of this range.
Is there something out there for you?
If you are looking for a property that fits the criteria of an ideal buy in the CCR, Grange 1866 is for you. This is a freehold property selling at the price of a leasehold property. Moreover, living in the heart of the city, near Orchard Road is the perfect dream of many.
Click on the link below to watch the video to get a better understanding of the 3 critical factors when considering CCR properties.
https://www.facebook.com/ericpropman/videos/425940297076471
Disclaimer:
PropNex Realty Pte Ltd or its salespersons will not be responsible for any errors or omissions or for the results obtained from the use of this information. All information is provided with no guarantee of accuracy. If in doubt, kindly seek appropriate advice from your financial advisors or bankers before you make any property investment decision.
