[UPDATE] Developers roll out deferred payment schemes, price cuts in Jervois
By Cecilia Chow
/ EdgeProp Singapore |
SINGAPORE (EDGEPROP) - Those searching for a newly completed, freehold private condominium with a prime District 10 address will have choices on Jervois Road. There are three such developments: Fragrance Group’s 36-unit Jervois Treasures, Midas Land’s 43-unit Jervois Prive and SC Global Developments’ 55-unit Petit Jervois.
The first of the three projects to launch post-completion was Petit Jervois, SC Global’s first project in the Petit Collectible series. It features apartments with flexible layouts targeted at the young and affluent.
Completed in March last year, Petit Jervois boasts an urban industrial design by Rene Tan of RT+Q Architects, winner of the Designer of the Year award at the President’s Design Awards 2016. Seven Palms Resort Management, the estate management arm of SC Global Developments, will manage the property.
Having obtained the Certificate of Statutory Completion (CSC) for Petit Jervois in October 2022, the developer is no longer under the scope of the Housing Developers (Control & Licensing) Act. Hence, the developer has greater latitude with its marketing activities for Petit Jervois.
The freehold Petit Jervois has just two units available after the developer offered a deferred payment scheme late last year (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Deferred payment at Petit Jervois
SC Global launched a deferred payment scheme for Petit Jervois in late 2022. Homebuyers need only make a 10% down payment and defer the completion of the purchase (exercise date of the option to purchase). Since then, the project has been almost sold out, with just two units available.
Petit Jervois has two five-storey blocks of primarily one- and two-bedroom units with sizes from 581 sq ft to 1,012 sq ft, with only a limited number of three-bedroom apartments from 1,044 sq ft to 1,292 sq ft.
The highest psf price achieved at Petit Jervois was $3,165 psf for a 958 sq ft, two-bedroom unit on the third floor. It fetched $3.032 million in December 2022, based on caveats lodged. The average price achieved for Petit Jervois is $2,723 psf.
The 20m lap pool of the 36-unit Jervois Treasures (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Jervois Treasures — deferred payment up to 24 months
Across the road from Petit Jervois is Jervois Treasures, the five-storey condominium designed by RSP Architects. It is completed with its CSC obtained at the end of March. Developer Fragrance Group has appointed Brilliance Capital as the exclusive marketing agency for Jervois Treasures’ post-completion launch.
The developer is offering buyers a Deferred Payment Scheme (DPS) with the option to defer the completion by 12 or 24 months. “The DPS will ease cash-flow challenges faced by buyers, including those who are buying in trust,” says Sammi Lim, founder and executive director of Brilliance Capital.
“The DPS also offers buyers — investors and owner occupiers — the flexibility to secure an apartment while interest rates remain elevated. They can defer locking in their mortgage rates until a year or two from now when interest rates have stabilised.”
Lim: The deferred payment scheme allows buyers to secure an apartment while interest rates remain elevated. They can defer locking in their mortgage rates until a year or two later when interest rates have stabilised (Photo: Brilliance Capital)
Traditionally, developments in the Core Central Region (CCR) have significant exposure to foreign demand, says Wong Xian Yang, head of research for Singapore and Southeast Asia at Cushman & Wakefield.
The latest set of property cooling measures that took effect on April 27, where additional buyer’s stamp duty (ABSD) for foreign homebuyers doubled to 60%, will have “a chilling effect on the CCR”, Wong comments.
Lim of Brilliance Capital expects demand for prime, freehold properties in the CCR to be driven primarily by locals and Singapore Permanent Residents. For foreigners, it will be those who enjoy the same ABSD treatment as Singapore citizens, namely nationals from the US, and those from Iceland, Liechtenstein, Norway and Switzerland. Switzerland. Some foreigners may also be prepared to pay the 60% ABSD, especially those who intend to stay for the long-term, she adds.
Show suite of a two-bedroom unit with a corner of the living area converted into a workspace (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Prices from $2,559 psf
At Jervois Treasures, the developer offers units priced from $2,559 psf on top of the DPS. “There will also be no price differential between those who opt for the DPS and those who don’t,” 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).
Prices of two-bedroom apartments start from $2.036 million ($2,590 psf) for a 786 sq unit, while three-bedroom units of 1,130 sq ft start from $3.138 million ($2,777 psf). The sole three-bedroom, dual-key unit of 1,227 sq ft has a $3.19 million ($2,601 psf) price tag.
Designed to appeal to investors, singles, couples or small households, one- and two-bedroom units at Jervois Treasures account for 30 units (83.33%) of the 36 units in the project. It has four three-bedroom units, a sole dual-key unit and an exclusive three-bedroom duplex penthouse.
All the units at Jervois Treasures come with high-end kitchen appliances, including a dishwasher and washer-dryer featuring the French brand DeDietrich. “The units are both functional and practical,” says Lim.
Show suite of a two-bedroom unit, where sizes range from 624 to 839 sq ft (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Rental demand
Under the DPS, owner-occupiers need only make a 10% down payment, and they can move into their new apartment. For $80,000 to $100,000 more, the developer could also furnish and fit out the one- and two-bedroom units in the style of the show suites.
The developer can fit out and furnish the units for investors too. With a ready pool of tenants, the developer will also be able to “match tenants with investors”, says Lim. At Jervois Treasures, one-bedroom apartments could command $3,800 to $4,000 a month, while two-bedroom units could fetch $5,000 to $5,500 a month, depending on the layout. Based on the selling prices, investors can expect gross rental yields of about 3%, estimates Lim.
Buyers have purchased two units at Jervois Treasures before completion. One was a 1,130 sq ft, three-bedroom unit on the fourth floor that went for $2.87 million ($2,433 psf) in February 2020. The other was the three-bedroom duplex penthouse of 1,496 sq ft that went for $3.398 million ($2,271 psf) in February 2021. Both buyers were said to be Singaporeans.
The en suite master bedroom of a two-bedroom unit at Jervois Treasures (Photo: Samuel Isaac Chua/EdgeProp Singapore)
“Right-sizing”
According to Lim, Jervois Treasures’ unit sizes, absolute prices and location also attract those who want to “right-size”. “Some are retirees living in houses and no longer need such a big home,” she says.
Such buyers tend to pay using cash and are not subject to borrowing limits or interest rates. For those who are right-sizing, they are also not going to be paying a higher ABSD, as they are likely to sell their existing homes, adds Lim. Singaporeans buying a second property will now be hit by a 20% ABSD, from 17% before.
Some parents living in the Good Class Bungalow (GCB) area nearby — Jervois Road, Jervois Hill, Mount Echo Park, Bishopsgate, Cable Road and Chatsworth — could also purchase a unit at Jervois Treasures for their children to live near them. Alternatively, some could purchase an investment unit for long-term rental income.
Jervois Treasures has a shortcut that leads directly to the Alexandra Park Connector. Other amenities nearby include Valley Point Shopping Centre, Little Farms supermarket, Great World shopping mall and the Great World MRT station on the Thomson-East Coast Line. “It’s also a short drive to Dempsey Hill, Singapore Botanic Gardens, the CBD, Robertson Quay and Orchard Road,” says Lim.
The 43-unit, freehold Jervois Prive is also newly completed, with the developer offering a 2% price discount (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Jervois Prive — ABSD paid
Recently completed is the 43-unit Jervois Prive by boutique developer Midas Land, co-founded by real estate investor Mike Ho and property developer and trained architect Dawn Lim. The project is also along Jervois Road.
The design architect for the five-storey Jervois Prive is Yip Yuen Hong, founder and principal architect of ip:li Architects, who is also the design architect for GuocoLand’s luxury condos Martin Modern and Midtown Modern condominium projects, in collaboration with ADDP Architects.
Jervois Prive is a redevelopment of the former Jervois Green, which Midas Land had purchased en bloc for $52.9 million ($1,601 psf per plot ratio or psf ppr) in December 2017. Midas Land’s purchase of the former Jervois Green came three months after SC Global’s en bloc purchase of the former Jervois Gardens for $72 million ($1,373 psf ppr) in September 2017. Fragrance Group purchased the former Lotus @ Jervois for $46.3 million ($1,683 psf ppr) in March 2018. (See potential condos with en bloc calculator)
The three sites were purchased before the July 2018 property cooling measures. “All three developments in the Jervois area fall under the old ABSD regime of 15%,” says Dominic Lee, head of luxury team at PropNex, one of the appointed marketing agencies for Jervois Prive.
The ABSD for developers doubled to 30% (5% is non-remissible) in July 2018; in December 2021, it was raised to 40%, of which 5% is non-remissible.
Hence, even though Midas Land’s ABSD is due on June 5, the developer decided to settle its outstanding ABSD with the Inland Revenue Authority of Singapore (IRAS) in April. “We wanted to give our buyers confidence when they buy our development,” says Ho. “Recently, there has been a lot of news about developments with ABSD due soon and suggestions of drastic price cuts in the offing.”
He believes in “the long-term investment potential and capital appreciation of [Jervois Prive]”, which he describes as “a thoughtfully designed, well-built freehold development in the Jervois-Tanglin area”.
The second bedroom of a two-bedroom show apartment at Jervois Treasures that has been converted into a workspace-cum-guest room (Photo: Samuel Isaac Chua/EdgeProp Singapore)
“TOP launch”
Jervois Prive obtained its Temporary Occupation Permit (TOP) last month. As part of the project’s “TOP launch”, the developer is offering buyers a 2% discount, with prices starting from $1.5 million or $2,756 psf.
Seven units at Jervois Prive have been sold, with an average price of $2,897 psf. The latest sale was for a 1,109 sq ft, three-bedder on the fifth floor that fetched $3.57 million ($3,220 psf), based on a caveat lodged on April 17. It is the highest psf price achieved in the project thus far. The developer says the $3,220 psf is after a 2% discount.
“All the buyers are Singaporeans and PRs,” observes Ho. “I think they are mostly owner-occupiers, professional couples in their 30s and 40s and a few small families,” observes Ho.
He believes it is the quality of the development that draws these buyers. “Our specifications are the highest in the Jervois area – American walnut flooring for all the bedrooms, Turkish marble in the living and dining areas, Gaggenau kitchen appliances and Gessi bathroom fittings,” 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.
On top of the $1.985 million ($2,884 psf) for the apartment, a buyer who wants a move-in-ready unit need only pay an additional $218,000 for the interior design and furnishing of the two-bedroom show suite. 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.
Given the limited new supply and incentives developers are offering — from deferred payment schemes to discounts — the new condos in Jervois present a buying opportunity (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Is the Jervois area overlooked?
The Jervois neighbourhood has been overlooked by homebuyers, even though it is near the GCB area of Mount Echo Park, Bishopsgate and Chatsworth. “Perhaps it’s not top of the mind as there are no high-profile, ‘mega launches’ with a few hundred units in the area,” Ho reckons.
It could be the scale of the developments. Two years ago, in October 2021, Kimen Group launched the 130-unit Jervois Mansion. At its VIP preview in early October, 29 units were sold at an average price of $2,346 psf. Prices increased, and a fortnight later, 74 units were snapped up at prices ranging from $2,241 to $2,898 psf. To date, 104 units have been sold at an average of $2,558 psf. The developer is holding the remaining units for long-term rental income.
Jervois Mansion is currently under construction and is targeted for completion in 2026. The development sits on a freehold site of almost 100,000 sq ft, which is larger in scale than the other three boutique developments, with site areas ranging from close to 20,000 sq ft to 34,000 sq ft. Kimen Group can offer generous landscaping and facilities due to its bigger site area.
Location of new condominiums in the Jervois area: Jervois Prive, Petit Jervois, Jervois Treasures and Jervois Mansion (Source: EdgeProp Landlens)
However, boutique developments have their charm, notes Ho. Jervois is centrally located in the Tanglin area, he says. “It’s next to some of Singapore’s most expensive landed homes and is ideal for people who enjoy living in a quiet, low-density enclave.”
The latest cooling measures could push more foreigners into the rental market now that the ABSD for them has doubled. Ho expects rental demand in District 10 to increase, translating to improving rental yields.
For developers, it’s getting harder to buy freehold land in the CCR at attractive prices, says Ho, especially with the continued increase in land, labour and material costs.
Given the limited new supply and incentives the developers are offering — from deferred payment schemes to discounts — the newly completed condos in Jervois present a buying opportunity, says Brilliance Capital’s Lim.
Check out the latest listings near Jervois Treasures, Jervois Prive, Petit Jervois, Jervois Mansion, Great World MRT station
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