Piermont Grand, probably the only Executive Condominium (EC) launch this year, had a busy weekend. So far, about half the available units have been sold. Here’s what you need to know about this well-timed launch:
Pushing the limits on Punngol property prices
Punggol has long been considered the place for affordable property; so it was a surprise when Piermont Grand (at Sumang Walk) came with a $1,080 psf price tag. The typical four-bedroom unit in this EC reached $1.3 million, while five-bedroom units reached $1.5 million. By comparison, the average psf in District 19 (for ECs) is about $980 psf (based on 99.co data).
Piermont Grand is a 99-year leasehold EC, jointly developed by CDL and TID. The developers made the top bid of $509.37 million for the Sumang Walk plot last year, or about $583 per square foot per plot ratio. It remains the highest recorded price for an EC site.
The bid surprised us, along with several other market watchers. The land plot is located near My Waterway@Punggol, and it’s not close to Punngol MRT (you’ll have to use the Sumang and Nibong LRT stations to get there, which are each about a five minute walk from the EC). While there are good outdoor amenities nearby, it’s not exceptional in terms of retail of dining.
However, buyers seem willing to bank on its relative proximity to the up and coming Punggol Digital District, as well as room for further appreciation.
In any case, this development sets a new milestone for the neighbourhood. It might signify the end of “cheap Punggol” in the next decade or two to come.
Top property launch this year
375 out of 820 units were sold over the launch (about 46 per cent). Second-time buyers dominated, making up 65 per cent of buyers (only 30 per cent of an EC can be sold to second-time buyers at launch). This makes it the best property launch of 2019.
However, this was to be expected despite the high price. As we’ve mentioned before, Singaporeans will rush for an EC even if it’s expensive. This is because they can get the usual CPF Housing Grants, effectively buying private property at subsidised rates. While there is no HDB loan for ECs, the minimum cash down payment on an EC is just five per cent of the value (e.g. $65,000 for $1.34 million unit at Piermont Grand).
Another 20 per cent of the value can be paid through CPF, and the remaining amount can be financed by the bank.
Besides being an EC, Piermont Grand had the added edge of being probably the sole EC launch of the year. This funneled a lot of demand from a very eager demographic, into this one project.
by Ryan Ong
Source: 99.co (30 Jul 2019)