Crazy Big Ideas

Lumina Grand, a beacon of modern living, rises as the first Executive Condominium (EC) launch of 2024 in Bukit Batok. Nestled at 512 units across 10 sleek blocks on Bukit Batok West Avenue 5, it stands proudly alongside its neighbor, Altura, launched in August 2023. While Altura awaits its completion in 2027, Lumina Grand beckons with an array of choices for homebuyers seeking a vibrant yet tranquil haven.

Step into a world of diverse options. For the compact-living enthusiast, 3-bedroom havens starting at 936 square feet and S$1.34 million (S$1,429 psf) offer a cozy embrace. Aspiring for more space? 3-bedroom premium units, starting at S$1.39 million (S$1,432 psf), provide room to breathe. Families yearning for expansive comfort can delve into 4-bedroom options starting at S$1.63 million (S$1,413 psf), while those seeking the ultimate grandeur can find it in 5-bedroom residences starting at S$2.1 million (S$1,402 psf).

But the story doesn't end at square footage. Location matters, and Lumina Grand boasts a prime spot. While Altura boasts an 88% take-up rate with an average price of S$1,475 psf, Lumina Grand offers competitive pricing while standing on the cusp of exciting developments. It straddles the line between Bukit Batok West and the burgeoning Tengah, a future smart and sustainable precinct.

However, a quick reality check: Tengah is nascent, with its first MRT stations opening only in 2027. Until then, residents will rely on a bus connection to Bukit Gombak. For immediate needs, the established HDB enclave nearby holds the key, offering familiar heartland comforts like coffee shops, clinics, and supermarkets.

Speaking of comforts, greenery plays a starring role at Lumina Grand. Nestled between Tengah Plantation Village and Bukit Batok Hillside Park, residents are blessed with lush vistas, a welcome respite from the urban buzz. For more extensive retail and entertainment, patience is required as the area undergoes development.

A glimmer of future brilliance exists in the form of ACS Primary School. While its relocation is years away (2030), the prospect adds a touch of academic charm to the neighborhood.

Executive Condominiums (ECs) in Singapore hold a lot of promise: modern living, condo-style amenities, and potentially lower prices than private condos. But before you jump on the "sandwich flat" bandwagon, it's crucial to understand the flip side. Here's why an EC might not be the perfect fit for everyone:

Eligibility Hurdles: Not everyone can join the EC club. Income ceiling and citizenship restrictions can leave many hopeful buyers out in the cold. Do you fit the criteria comfortably, or might unforeseen circumstances tighten your finances in the future?

Resale Rollercoaster: Remember those initial ownership restrictions? They extend to resale too. For the first 10 years, you're limited to selling to other eligible Singaporeans/PRs, potentially shrinking your buyer pool and impacting your asking price. Are you prepared for this limited market access?

Location Blues: Many ECs are located in non-central areas, further from workplaces and essential amenities. While this might translate to lower prices, it also means longer commutes and potentially less vibrant surroundings. Does convenience rank high on your priority list?

The Not-So-Hidden Costs: Sure, ECs might be cheaper than private condos upfront, but don't underestimate the ongoing costs. Maintenance fees can be higher than HDB flats, and don't forget the potential property tax bite after 10 years. Have you factored these expenses into your budget?

The Investment Gamble: While ECs often see price appreciation, it's not guaranteed. Market fluctuations and changing regulations can impact your returns. Are you comfortable with the inherent risks of property investment, especially with added ownership restrictions?

The Commitment Conundrum: The 5-year Minimum Occupation Period (MOP) means you're locked in for a while. Unexpected life changes or job relocations could throw a wrench in your plans. Are you sure you can commit to staying put for at least five years?

The Singapore property market has been significantly impacted by the implementation of cooling measures, particularly the Additional Buyer’s Stamp Duty (ABSD) and the Total Debt Servicing Ratio (TDSR). There is a prevailing belief that these measures will likely remain in place until at least the next General Election, which was expected to be held in 2016. The ABSD, in particular, has had a substantial impact on foreign buyers, leading to a decrease in transaction volumes for condos by foreign buyers. As a result, the potential appreciation of Core Central Region (CCR) properties is seen as very limited until the ABSD is removed.

The impact of these measures is evident in the market, with analysts expecting property prices to continue falling into 2024. With the number of Singapore property transactions slowing, the sentiment is that the CCR market may remain flat or even trend down until the cooling measures are lifted, especially due to the impact on foreign buyers. The withdrawal of Indonesian buyers from the CCR market serves as a notable example of the impact of these measures on foreign investment in the Singapore property market.

The removal of the ABSD for foreigners is seen as a high-stakes political gamble for the government, and it is unlikely to be done until after the General Election. As a result, potential property investors are advised to consider a long-term investment horizon and may need to factor in a discount of 10-15% to offset the potential fall in prices at least until 2016. This cautious outlook on property investment in Singapore reflects a paradigm shift in the market, where property investment is no longer seen as the sure-winner investment it used to be.

The prevailing sentiment suggests that there is no fast buck to be made anymore for property investment in Singapore. The market is witnessing a shift, and property investment is no longer viewed as the lucrative opportunity it once was. Instead, there is a growing emphasis on encouraging people to focus on more value-added work, reflecting a potential shift in the government's intentions regarding property investment in Singapore.