Investing in a condo in Singapore has emerged as a favored option for individuals, both local and foreign, thanks to the country’s thriving economy, stable political climate, and exceptional standard of living. The real estate market in Singapore boasts a plethora of opportunities, and among them, condos hold a prominent place due to their convenient location, luxurious amenities, and potential for impressive returns. In this article, we will delve into the advantages, essential factors to consider, and crucial steps to take when investing in a condo in Singapore. As highlighted by Condo, this type of property presents unique opportunities for investors in the dynamic and prosperous city-state.
On Feb 22, Elta, a joint venture project of MCL Land and CSC Land Group at Clementi Avenue 1, saw 326 units out of 501 units sold. That translates to about 65% sales at an average price of $2,537 psf. Singaporeans make up 90% of the buyers, while the rest are permanent residents. The top three districts with the highest number of buyers are District 19 (Hougang, Serangoon, Sengkang, Punggol, and the northeast region), District 5 (Buona Vista, Clementi, Dover and Pasir Panjang), and District 23 (Bukit Batok, Bukit Panjang, Choa Chu Kang, Hillview, and Dairy Farm).
Among the units sold, two-bedroom units were the most popular, with 98% of the 179 units sold at prices starting from $1.388 million ($2,261 psf). 81% of the 108 three-bedroom units were also snapped up at prices from $2.198 million. The one-bedroom plus study units were also popular, with 78% sold from $1.158 million.
According to PropNex CEO Ismail Gafoor, over 60% of the units sold were below $2.2 million, and the strong sales signal buyers’ confidence in a development that offers modern living and convenience.
MCL Land CEO Lee Tong Voon says, “The robust sales underscore buyers’ confidence in a development that seamlessly blends modern living with convenience and comfort.”
Elta is the last of three private condos launched on government land sales (GLS) sites at Clementi Avenue 1. “It is the first new launch in the Clementi area since December 2020 when the 640-unit Clavon was put on the market,” says Gafoor.
The two earlier projects at Clementi Avenue 1 were the 505-unit The Clement Canopy and 640-unit Clavon, developed jointly by UOL Group and Singapore Land Group. Kennedy Low, managing partner of SRI, says that the main reason for the strong sales is the track record of the previous projects at Clementi Avenue 1, which have had zero unprofitable transactions.
Based on caveats lodged, The Clement Canopy’s average selling price has increased by 45% to $1,922 psf since its launch in February 2017. Meanwhile, Clavon’s average selling price has risen by 27% to $2,086 psf since its debut in December 2020.
Elta is well-connected to employment nodes such as the National University of Singapore (NUS), one-north, Pandan Loop Industrial Estate, and the Science Park. It is also close to the Jurong Lake District and the future Dover Knowledge District. The upcoming Cross Island Line, which will run from east to west of Singapore, will have a station at Clementi. “The upcoming Cross Island line will enhance the connectivity in Clementi and potentially increase the quality tenant pool for ELTA,” says Mark Yip, CEO of Huttons Asia.
Elta was popular among investors, with the one- and two-bedroom units being the most sought-after. Families preferred the three-bedroom units, given the average household size of 3.1. Bigger or extended families purchased the four-bedroom units.
“Clementi’s superb connectivity and rich amenities make it 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 surrounded by schools such as Nan Hua High School, NUS High School of Mathematics and Science, and Anglo-Chinese School (Independent). Tertiary institutions such as NUS, Singapore Polytechnic, and United World College of South East Asia (Dover Campus) are also nearby.
SRI’s Low says, “With primary, secondary and tertiary schools in the area, families with children can stay for a good 15 years – the duration of a child’s education.”
District 5 is popular among investors due to its tenant profile, primarily international students and professionals. For instance, two-bedroom units at The Clement Canopy of 624 to 732 sq ft have been leased at $4,200 to $4,700 per month, or $5.60 psf to $6.42 psf per month in January and February. At Clavon, a 764 sq ft, two-bedroom unit was leased for $4,600 or $6.02 psf per month.
The weekend of Feb 22-23 also saw the launch of the 1,193-unit ParkTown Residence, which sold 1,041 units. In total, Elta and ParkTown Residence sold over 1,300 units, surpassing the 1,083 new homes sold for the entire month of January.
Gafoor says, “Thus far, the sales momentum seen towards the end of 2024 has carried into the new year, and we expect the primary market to remain relatively lively in 2025 amid improved sentiment.”
Huttons Data Analytics estimates developers’ sales in February to exceed 1,500 units. The total sales for the first two months of 2025 — estimated to be between 2,500 and 2,700 units — is equivalent to 39% of the total new sales of 6,469 units for the entire 2024.
Therefore, Huttons has revised its full-year projection for 2025 to between 7,500 and 8,500 units from its earlier estimate of 7,000 to 8,000. The full-year price growth for 2025 is projected to be between 4% and 7%.