In this article, we will discuss the key benefits and reasons why the Copen Grand EC launch is so appealing to buyers. It is a significant development that not only addresses the important factors of affordability and growth, but also has great potential. Here are our thoughts about the project.
1. Copen Grand EC being more affordable than private property
Copen Grand EC offers a lower entry price than other new launches on the market. Prices for private new launches have risen dramatically and are currently at extremely high levels.
OCR projects like AMO Residence, which almost sold out during its launch weekend, have an average psf estimate of $2,100. This is more than 61.5% higher than the $1,300 average psf of EC options such as Copen Grand or North Gaia. Launch price is much lower and offers greater growth potential.
2. Right-sizing unit mix
EC launches are much more rare than their private counterparts. This allows for a very affordable entry to the apartment and condominium market. It is a great value. People often overlook EC options when choosing a property because of its sporadic launch.
Copen Grand EC focuses heavily on the 3 Bedroom option for buyers. This is a great approach to right-sizing, as Singapore’s families are becoming smaller. Three bedroom options will make up around two-thirds of all available units. Nearly a third will be able offer comfortable living spaces in Copen Grand EC for larger families.
Copen Grand, based on its unit size distribution is great for new families and provides them with the perfect size living space. Three-generation families can also live comfortably in Tengah with larger options.
3. In the increasing interest rates environment, progressive payment will help
It is important to bring up the question of affordability and price again. The combination of the EC and a new launch greatly helps with the issue cash flow and affordability. This is a great alternative to sky-high property prices and an ever-rising interest rate environment.
The Fed is not planning to ease off the accelerator on interest rate hikes. It will not surprise that mortgage interest rates will rise to 4 to 5% by 2023. Copen Grand’s new launch status will allow cash flow to the progressive payment scheme.
While HDB loans cannot be used for ECs but the smaller quantums available for ECs compared with private condominiums will make them a viable alternative in this difficult macro market. An example of this is a 3 Bedroom unit that measures 1,006 square feet. This represents a quantum of $1307,800. This is a tremendous quantum and value play on the market for the middle-class Singaporeans.
An estimated loan amount of $980,850 at 75% LTV would be. This figure does not include any grants, which can be available at the point-of-purchase. These grants range from $5,000 to $30,000,000. This is how the progressive payment will look using this example. Assumed for this loan, the interest rate is 3% with a 30-year tenure. The monthly loan repayment amount does NOT include interest overtime and repaid capital. This is to make it easier for you to calculate. It is therefore a conservative estimate for the monthly loan repayment amount.
4. D22 is the second highest OCR growth area (second highest in OCR).
This is perhaps the most compelling reason Copen Grand EC has so many people love it. District 22, which has a CAGR 6.9%, is the second most populated OCR district. This is great news to those planning on selling their property in the area.
We can see that the rapid growth is related to the launch of BTO. Both District 27 and 22 have seen many projects launched. These locations may continue to grow and strengthen as we move forward.
5. Large BTO estate surrounding — Potential upgrader audience
The large BTO estate around Copen Grand is a significant part of the area’s potential HDB upgrader audience. We can see the future 10 years after Copen Grand’s launch. It will be completely privatized.
Holding till TOP or privatization for Copen Grand EC owners is a great way to reap the benefits. This will give Tengah the opportunity to fully develop its Jurong Region Line as well as the other amenities such as food options, new schools and medical facilities.
As the estate matures, the value of all properties within the area, especially private property will increase. This presents a fantastic opportunity to capital gain in the future. This is complemented by the high demand for HDB BTOs.
We see a high number of subscribers to the Tengah Flats Owners Organizations (BTOs) in February 2022. This estate is growing in popularity and would likely develop more amenities due to its large population.
6. Line stations in the Jurong Region were completed by 2027-2028
All Tengah residents can benefit from the Jurong Region Line. It is expected that the line will be completed in 2029, which is approximately 2 to 3 years after Copen Grand’s TOP. In total, 24 stations will be completed in three phases.
The Jurong Region Line will link Choa Chu Kang and Boon Lay interchanges. It will link the heartlands of west to major business hubs and educational institutions as well as commercial outlets.
The stations nearby, Tengah and Hong Kah, will be completed by 2027. Tengah Plantation is expected to be complete in 2028. These stations are located near Copen Grand and are only 5 minutes walk from the EC.
7. It is far from the Central Region, but there is more commercial and recreational development in Jurong Lake District under the Long-Term Plan
Although the Tengah estate may be far from the city’s central business district, it is close enough to the URA masterplan and long-term plans for the area. This estate will focus on sustainability and greenery. District 22 will see more commercial and recreational development.
Importantly, Tengah estate’s green and sustainability focus will be crucial. Many new estates in Singapore have too many concrete blocks, which can lead to heat problems. Tengah’s greenery will provide much-needed relief from the heat, as Singapore is always hot. The area will hopefully be kept cool by the greenery.
8. Excellent location for morning and afternoon sunlight.
Copen Grand EC units face north or south. This reduces the effects of the afternoon and morning sun. This arrangement of blocks seems to be designed with the sun in mind. It will make buyers feel at ease as the world heats up from climate change.
9. Design for cross-room ventilation
We also liked the EC’s attention to green features. We were particularly impressed by the cross-room ventilation system. This feature is often overlooked for its comfort. Ventilation is often what makes a viewing experience pleasant for buyers.
Copen Grand EC focuses its attention on ventilation and takes conscious design steps to ensure residents have a luxurious, but also comfortable experience.
Copen Grand EC is a great option for new buyers. Copen Grand EC is able, despite the difficult macroeconomic environment for property owners to offer buyers many benefits that only a few other properties can. It is affordable for the Singaporean middle classes, offers avenues to address rising interest rates and has excellent prospects for capital appreciation and growth.