Developers introduce price reductions and delayed payment plans in Jervois

If you are looking for a recently constructed, freehold private condominium with a premium District 10 location can find it on Jervois Road. There are three developments: Fragrance Group’s 36 unit Jervois Treasures Midas Land’s 43-unit Jervois Prive as well as SC Global Developments’ 55-unit Petit Jervois.

The first of three projects to go live after completion is the Petit Jervois the SC Global’s initial project within the Petit Collectible series. It offers apartments that are flexible layouts geared toward those with a young and high-end lifestyle.

In March of this year, the project was completed, Petit Jervois boasts an urban industrial design created by Rene Tan of RT+Q Architects who was awarded Design of the Year prize at the Presidential Design Awards 2016. Seven Palms Resort Management, the estate management division that is part of SC Global Developments, will take care of the property.

Pinetree Hill Ulu Pandan area, the charming Pinetree Hill sits in the central region of Singapore. It is considered one of the upmarket regions in the country which offers a near city life without the hustles and bustle of a city centre.

In the event that they obtain an Certificate of Statutory Completion (CSC) for Petit Jervois in the month of October 2022 The developer is now out of the authority under the Housing Developers (Control & Licensing) Act. Thus that the developer enjoys greater freedom in its marketing efforts for Petit Jervois.

Payable deferred at Petit Jervois

SC Global launched a deferred payment program to help buyers purchase Petit Jervois in the latter half of 2022. Buyers need to make only 10% down payment, and then defer the time frame for the acquisition (exercise dates of purchase option). Since this time, the property has nearly sold out, and there are just two units remaining.

Petit Jervois has two five-storey blocks that are mostly ones and two bedroom apartments in sizes ranging of 581 sq. ft. to 1,012 square feet. There is the exception of a small number of three-bedroom units ranging from 1,044 sq feet to 1,292 sq.

The highest price for psf in Petit Jervois was $3,165 psf for a 958 sq feet 2 bedroom unit located on the third floor. It was worth $3.032 million as of December 20, 2022 based upon caveats filed. The median price for Petit Jervois is $2,723 psf.

Jervois Treasures deferred payment for up to 24 months

The other side of the road to Petit Jervois is Jervois Treasures which is a five-storey condominium created with RSP Architects. It’s completed thanks to its CSC which was obtained in March. Developer Fragrance Group has appointed Brilliance Capital as the exclusive marketing agency for Jervois Treasures’ post-completion launch.

The developer offers buyers the option of a Deferred Payment Scheme (DPS) with the option of delaying the payment for 12 or 24 months. “The DPS will ease cash-flow problems faced by buyers for example, those who purchase through the trust sector,” states Sammi Lim who is the co-founder and director at Brilliance Capital.

“The DPS also offers buyers as investors or owner occupiers the ability to secure an apartment even if the interest rates are still high. They are able to delay the locking in of their mortgage rates for at least a year or two after the time when rates are stable.”

Typically development projects within the Core Central Region (CCR) have a significant risk of being exposed in the face of foreign demands, according to Wong Xian Yang, head of research for Singapore and Southeast Asia at Cushman & Wakefield.

The most recent set of property cooling measures, which came into effect on April 27 in which the additional buyer’s stamp duty (ABSD) on foreign buyers increased to 60% it will result in “a negative impact to CCR”, Wong comments.

Lim of Brilliance Capital expects the demand for premium, freehold properties within the CCR to be driven by residents and Singapore Permanent Resident. For foreigners, this will be those who have similar ABSD benefits in the same way as Singapore citizens, such as those from the US and that are residents of Iceland, Liechtenstein, Norway and Switzerland. Switzerland. Certain foreigners might be willing to pay 60% ABSD particularly those who plan to stay long-term in she says.

Prices starting at $2,559 per ff

At Jervois Treasures The developer provides units that start at $2,559 per square foot in addition to the DPS. “There will be no difference in price between those who choose using the DPS as opposed to those that do not,” she adds.

Absolute prices are palatable too, with one-bedroom units from 506 sq ft starting from $1.376 million ($2,719 psf) and 592 sq ft, one-bedroom-plus-study from $1.592 million ($2,689 psf).

Two-bedroom apartment prices start at $2.036 million ($2,590 per square foot) for a 786 square foot unit. Three-bedroom units with 1,130 square feet begin at $3.138 million ($2,777 per square foot). The only three-bedroom dual-key unit measuring 1,227 square feet has an $3.19 million ($2,601 per square foot) cost.

The project is designed to attract individuals, couples, investors or small families, onetwo-bedroom and one-bedroom units located at Jervois Treasures make up the majority of (83.33%) of the 36 units of the development. There are four three-bedroom units, one double-key unit, and a prestigious three-bedroom penthouse duplex.

The apartments at Jervois Treasures are equipped with top-of-the-line kitchen appliances, like dishwashers and washer-dryers that feature that French name DeDietrich. “The units are functional as well as practical” Lim says. Lim.

Rental demand

Under the DPS the owner-occupiers only need to make a 10-% down payment before they are then able to relocate to their next home. For a cost of $80,000 to $100,000 more it is possible that the developer can also decorate and equip the two-bedroom and one-bedroom units to resemble the showroom suites.

The developer is able to build and furnish the apartments for investors as well. With a list of tenants and investors, the developer can also expect be able to “match renters with buyers” Lim says. Lim. At Jervois Treasures Apartments with one bedroom could fetch $3,800-$4,000 each month, while two-bedroom apartments could cost $5,000 to $5,500 a month dependent on the design. Based on selling prices the investors can anticipate gross rental yields of around 3% as per estimates by Lim.

Buyers have bought two units at Jervois Treasures, which are not yet completed. There was one, a 1,130 square 3 ft, three bedroom unit located on the fourth floor. It was purchased at $2.87 million ($2,433 per square foot) during February of 2020. The other was a three-bedroom duplex penthouse measuring 1,496 square feet that sold to $3.398 million ($2,271 per sq ft) in February 2021. Both buyers are believed to have been Singaporeans.

“Right-sizing”

As per Lim, Jervois Treasures’ dimensions, absolute price and location are also attractive to people looking to “right-size”. “Some are retired people who live in homes and do not need a huge house,” she says.

These buyers typically pay cash, and they are not restricted to limitations on borrowing and interest rate. If you are considering right-sizing their homes, they not paying more ABSD since they will likely sell their homes according to Lim. Singaporeans who are buying an additional property are now being affected by an additional 20% ABSD, up from 17% prior to.

Parents who live within the area of Good Class Bungalow (GCB) neighborhood the following areas: Jervois Road, Jervois Hill, Mount Echo Park, Bishopsgate, Cable Road and Chatsworth — can purchase a home at Jervois Treasures to allow their children to reside near them. Some may also purchase an investment property for an income from rental for a long time.

Jervois Treasures is the option of a direct route into the Alexandra Park Connector. Other nearby amenities comprise Valley Point Shopping Centre, Little Farms supermarket, Great World shopping mall, as well as The Great World MRT station on the Thomson-East Coast Line. “It’s not far to Dempsey Hill Singapore Botanic Gardens as well as Singapore Botanic Gardens, the CBD, Robertson Quay and Orchard Road,” says Lim.

Jervois Prive — ABSD paid

Just completed was the 43-unit Jervois Prove by the boutique developer Midas Land, co-founded by real property investor Mike Ho and property developer and qualified designer Dawn Lim. The development is also located along Jervois Road.

The architect responsible for the design of Jervois Prive, a five-storey building, Jervois Prive is Yip Yuen Hong. He is the founder and chief architect of ip:li architects, and also the designer for GuocoLand’s luxurious condos Martin Modern and Midtown Modern condominiums, which are in conjunction along with ADDP Architects.

Jervois Prive is a redevelopment of the old Jervois Green, which Midas Land had bought as a bloc in a single transaction for $52.9 millions ($1,601 PSF per plot, or psf per plot ratio) on December 31, 2017. Midas Land’s acquisition of the former Jervois Green was made 3 months before SC Global’s block purchase of the Jervois Gardens’ former Jervois gardens for $72 million ($1,373 psf ppr) in September of 2017. Fragrance Group purchased the former Lotus @ Jervois for $46.3 million ($1,683 PSF per psf) in March of this year.

These three sites were acquired prior to that July, 2018 property cooling rules. “All three developments within the Jervois region are subject to the previous ABSD threshold of 15%,” says Dominic Lee the head of the luxurious team at PropNex one of the designated agency for marketing Jervois Prive.

ABSD for developers. ABSD for developers was increased by 30% (5% is non-remissible) in July 2018, and by the time it was December 20, 2021 the rate was raised to 40% with five% can’t be rescinded.

Therefore that, even the Midas Land’s ABSD is due on June 5th The developer has decided to pay the unpaid ABSD by settling it with Inland Revenue Authority of Singapore (IRAS) in April. “We wanted to ensure that our customers have confidence when purchasing our developments,” says Ho. “Recently there’s been a lot of talk regarding developments, including ABSD coming soon, and also the possibility of drastic price reductions in the near future.”

It believes that “the longer-term investment opportunities and capital appreciation of Jervois PriveJervois Prive” He describes it as “a thoughtfully planned, well-built freehold development within the Jervois-Tanglin region”.

“TOP launch”
Jervois Prive obtained its Temporary Occupation Permit (TOP) in the last month. In conjunction with this project’s “TOP launch” the developer will offer purchasers a 2% discount for prices that start at $1.5 million or $2,756 per square foot.

Seven of the units in Jervois Prive were sold at an average of $2,897 per square foot. The most recent sale was for 1109 square feet of three-bedder on the fifth level which sold for $3.57 million ($3,220 per square foot) Based on an agreement signed on the 17th of April. This is the most expensive price per square foot achieved by the development thus far. The developer claims that the $3,220 figure comes after two% discount.

“All of the purchasers have been Singaporeans or PRs” Ho says. Ho. “I think they’re typically professional couples, owner-occupiers who are in the 30s or 40s, and the occasional small family,” observes Ho.

He believes that it is the design’s quality that draws buyers. “Our specifications are among the best in the Jervois region The specifications include American walnut flooring in every bedroom, Turkish marble in the dining and living spaces, Gaggenau kitchen appliances and Gessi bathroom fixtures,” he says.

The developer engaged interior design firm 2nd Edition to fit out and furnish two units on the third level as show suites: a 689 sq ft, two-bedroom unit and a 1,389 sq ft, three-bedroom-plus-study.

To top off that $1.985 million ($2,884 per square foot) for the house one who is looking for an easy-to-move-in property will need to be prepared to pay $218,000 for the design and furnishings of the show-room with two bedrooms. The three-bedroom-plus-study has a price tag of $3.912 million ($2,817 psf), with an additional $268,000 for the interior design.

Are the Jervois region not being considered?
The Jervois neighborhood has been largely ignored by prospective buyers, even though it’s located within the GCB region of Mount Echo Park, Bishopsgate and Chatsworth. “Perhaps this isn’t on the list since there aren’t any high-profile mega launches with just a handful of units in the region,” Ho reckons.

It could be because of the magnitude of the projects. In the month of October 2021 Kimen Group launched the 130-unit Jervois Mansion. In its preview for VIPs in the beginning of October the property was sold to 29 buyers for an average of $2,346 per square foot. Prices climbed and within a week, 74 units were purchased with prices ranging from $2241 to $2,898 per square foot. So far there have been 104 units sold at an average price of $2,558 per sq ft. The developer holds the remaining units to provide rent for the next few years.

Jervois Mansion is in the process of being built and is planned to be completed by 2026. The development is located on the freehold site with an area of close to 100,000 sq feet. This is bigger than the three other small-scale developments, with site areas that range from 20,000 sq ft. to 34,000 sq feet. Kimen Group can offer large landscaping and facilities due the larger site size.

But boutique developments do offer a certain charm, according to Ho. Jervois is located in the Tanglin area, Ho declares. “It’s close to Singapore’s most expensive land-based homes, and is perfect for those who want to live in a peaceful and low-density enclave.”

The recent cooling measures may encourage more foreigners to enter the rental market as their ABSD on them increased by two-fold. Ho anticipates that demand for rental in District 10 to rise and this will translate into higher rent yields.

For developers it’s becoming harder to acquire freehold land in the CCR at a reasonable price Ho explains. Ho particularly due to the constant increase in labour, land and materials costs.

Due to the comparatively limited supply and the perks developers offer — from deferred payments to discounts recently completed condominiums in Jervois are a great opportunity to purchase as per Briilliance Capital’s Lim.