Project Details & Overview: Is Fernvale A Great Location?

Parc Botannia is an upcoming condo development situated along Fernvale Road, District 28, Singapore. Developed by the joint venture of Sing Holding Limited and Wee Hur Holdings Limited, the development offers 735 units across a variety of 1 to 5 bedroom.

Parc Botannia Singapore @ Fernvale Road owns a prime address, the building is well-served by a lot of major routes, especially, Jalan Kayu Road is the well-known place for many interesting activities. Here, you can shop at Seletar Mall, Rivervale Mall and Fernvale Point that is known the most crowded centre in the heart of District 28.

It is regrettable to miss plenty of renowned education institutions surrounding Parc Botannia Fernvale Road such as Nan Chiau Primary School, Sengkang Green Primary School and Pei Hwa Secondary School. These schools will ensure the great knowledge for your children.

With a prime location, there is no reason to don’t choose Parc Botania to build a new living.

Facilities & Amenities: Bang for the Buck?

Parc Botannia stands on a size 17,196.4 sqm with the variety facilities that bring the residents an impressive experiences. Here, the numerous interesting activities will be held at the lap pool, BBQ Area, Lounge, you can also participate in gymnasium and spa to improve your flexibility.

As a resident at Parc Botannia @ Fernvale Road, you will enjoy a tranquil lifestyle. The combination between nature and modern architect create a healthy environment. Start a new day with a cup of coffee and contemplate the Singapore skyline, have a delicious breakfast with your loved ones.

In the evening, recharge your batteries in a cool water at the beautiful lap pool or walking on the jogging track under the sunshine. That’s great!

Condo Floor Plans & Unit Mix: Yay or Nay?

Parc Botannia offers 735 exclusive apartments with the types from 1 to 5 bedroom for any need. Both family and the single person will please with the high-end quality and a spacious lay out here.

If you are interested, check out the Floor Plans Here. Get in touch with us so we can analyze and provide valuable insight based on your family needs or investing needs.

Remember that a good condo purchase often boils down to the unit selection and floor plan design. Get as many viewing you can from you agents, we know you won’t regret it.

Parc Botannia: Know Your Developers

Parc Botannia @ Fernvale Road is developed by joint-venture between Sing Holdings and Wee Hur, two renowned firms in Singapore real estate market. Parc Botannia comprises 735 premium apartments with full of condominium facilities. The condo is expected a highly sought-after development in the last months of 2017.

To learn their background, we have written an in-depth piece of article on Wee Hur Holdings & Sing Holdings

See Video:

First built in 1999, ECs offer private condo facilities and are gated and enclosed with security, it also has full condominium amenities like gymnasium, clubhouse, swimming pools, playground, BBQ pits.

Built and sold by private developers, they are sold at a price lower than private homes.

This is due to land prices being subsidized by the Singapore Government.

Also, just like public housing, buyers can use (CPF) and grants if any, to make payments towards a developer for an EC.

This article will share in-depth of some home owners with an investor mindset, and why they choose to buy an EC.

EC Prices are artificially adjusted downwards

Many agents will tell you that you are buying EC at a depressed price. They are not wrong in saying that because the government has pushed EC as a more luxurious form of subsidized housing for our sandwiched class (earning too much to breach income ceiling for BTO, but still out of reach to buy private property).

Many ECs in the past has achieved 10-20% more price growth after their 5-10 years of holding period when compared to similar private properties. The gains are even more pronounced when we look at ECs past their 10 years ages.

Assuming an average growth rate for housing prices in Singapore. It’d be challenging to find another asset class that can help you achieve the kind of appreciation that EC does.

This brings us to our next point.

Buying EC as an asset class purely for capital appreciation: A solid asset class for wealth preservation and capital appreciation

Many EC buyers are actual home owners who either aspire to own private property or is pushed out of the income requirement of $14,000 to be able to qualify to buy a BTO.

However, there is also a more uncommon class of buyers: Buyers who are eligible but are buying EC purely for investment purposes.

Property consultancy firm OrangeTee released a study that in the long run, ECs is a strong property investment.

OrangeTee’s analyst Celine Chan digresses that this is due to the lower initial purchase price because of government intervention and the positive cash flow due to rental income after the 5/10 years restrictions are lifted.

After the slew of property measures, EC prices have started to look tamer. EC prices are trending towards the $720 to $820 psf range.

Previously a big constraint will be Total Debt Servicing Ratio (TDSR) framework, and new ECs are currently bound by a 30% MSR, which has tightened the current demand pool.

This research done by OT research has a clear illustration that although a holding period of 5 years is costly, the overall yield that a typical owner buying a typical unit can achieve up to 7% long term yields.

ECs as sustainable long term investment.

Let’s compare the yields between EC after privatization and a normal private property purchased from the start.

A 20% price depression during launch for EC will also translate to higher rental yields for EC owners.

There are many reviews and studies done on the returns.

However from another perspective, in the event of a market downturn or tightening of demand for rental units, it also means that EC owners can have a much higher threshold to adjust their rental asking prices to be much more competitive than, let’s say, a private condominium owner.

They can achieve the same yield as per a private condominium owner even after adjustment for economic downturns or in the face of a lower labour market leading to lower rental demands.

Superior capital gains

The current Hdb regulations state that buyers of an EC have to endure a holding period of 5/10 years. After 5 years EC owners will be eligible to sell to Singaporean or PR and after 10, a foreigner.

A simple analysis on past executive condominium prices will show the following gains for these previous launches:

Bishan Loft +165% in price appreciation

The 99-years leasehold project located right at Bishan Street comprises of 384 units. The development completed in 2004, Bishan Loft is very near Bishan MRT station, walking distance to Bishan Junction 8 shopping mall and also Macritchie Reservoir Park

The Dew +122% in price appreciation

Location at the junction of Bukit Batok East Avenue 3 and Bukit Batok St 21, The Dew comprises of 248 unit with sizes starting from 2 bedroom units to penthouses.

Nuovo + 110% in price appreciation

Located at Yio Chu Kang/Ang Mo Kio, Nuovo is an 18 level executive condominium project housing 297 units. The project was also completed in 2004 and is near Anderson Primary School and Ang Mo Kio Community Hospital

Park Green +115% in price appreciation

Park Green is a 99-year leasehold condo project located in Sengkang. Total units comprise 368 units. It is also just a few minutes away from Rivervale Plaza, short drive to Hougang Stadium and easy access to Punggol Park.

The Eden at Tampines +110%

This Tampines EC was completed in 2003. Owners can take a 5-minute drive to Changi Airport, Singapore Expo Halls. It is also very near Changi Business Park and the new One World International School.

Therefore, as an unspoken assumption, the EC becomes a private property free of Hdb rules and regulations.

The perfect tool for future housing or retirement plans

Let’s face it. Singapore is a very structured country where policies are very effectively enacted, and the current major party/government in Singapore are highly supportive of home ownership and middle-class self-sustainability.

Most of us will take the path of balloting for a BTO flat while we are young, upgrading to a bigger unit while we enter our 30s to 40s when we have more disposable income and savings for an upgrade.

We have children and then they grow up, then find out that we don’t need such a big space anymore and look towards a downgrade.

Therefore, every step of an average Singaporean’s property decision becomes a very important process because it sets the stage up for future upgrade/downgrade feasibility.

If you were to buy a resale flat which is 30 years old while you are young, after another 20 years, where do you go?

Current markets now in ultra-mature estates such as Balestier, Circuit Road, Whampoa, are facing price stagnancy and even a trending downwards due to the difficulty in getting a buyer.

It is much more difficult for a buyer to buy an old flat due to various reasons, but most will be due to loan and prospects of a home.

Buying an EC provides a fresh 99 years lease, this offers a multitude of possibilities, and the price gains after 5/10 years privatization will provide a lot more routes to an up or downgrade in the middle to long term future.

A risk adverse asset class

Risk-averse property investor shuns risk, and so do their best to stay away from adding high-risk properties (e.g. Sentosa) or investments to their portfolio and in turn, lose out on expected higher rates of return.

While property investors looking for “safer” investments will stick to proven locations (Newton/Novena), they generally have lower yields.

However, for Executive Condominiums, it is a unique class of its own, it is low risk because it is sold at an artificially lower price.

This is because of all the regulations and restrictive policies placed on the EC by HDB and the government.

That turns EC into a potentially high return and low-risk asset class. You are buying at such a price that even if the economy tanks, your damage is still very much buffered due to your initial buying price.

Since TSDR and MSR regulations are in place to make sure that you can afford even before you buy, from an investor point of view, it becomes a highly investible asset class.

Is this too rosy to be true?

From an OT study, based on past sets of data, first-hand owners of privatized ECs sits on very sizeable gains.

Although we have to note that not all ECs are the same. Depending on the development location, current supply and demand of comparable, the rate of capital appreciation can be very different between various projects.

As of date, there are about 21 EC developments in our island that are more than 10 years old and have achieved privatization.

Looking at caveats, OrangeTee has made an analysis of their profits, at the 5th and 10th year milestone.

Compiling the data will show that not all ECs made positive gains after MOP. Of 21 projects, 13 made a loss after MOP at year 5, and the other 8 managed gains of over 20%.

Macro-economic conditions plays a huge role in determining the profits

The 13 projects that achieved MOP and sold at losses was launched by developers between years 1996 to 1999, right before the awful Asian Financial Crisis, that was a time where property prices were peaking.

In retrospect, ECs launched during 2001 to 2005, where Singapore experienced a period of sluggish growth, achieved returns of 25% and above after they reach MOP status.

So, these projects have benefited from the subsequent economic boom and recovery of the Singapore property market.

What now?

If you are currently looking out for an EC for own stay for investment, the newest launch now is Kingsford Waterbay at Upper Serangoon View, developers and agents have boasted this to be the “EC nearest to the City”.

We have a review right here. Or you can contact their developer sales team member at their dedicated hotline: +65 9183 6024.

Every now and then, I get Singaporeans I barely know asking me whether I grew up in private housing or an HDB flat. It’s clear that Singaporeans are still extremely status-conscious when it comes to the public-private housing divide.

Despite all that talk about the 5 Cs no longer being important, in actual fact the only C that’s died is the country club. Everything else is still very much alive in the hearts and minds of Singaporeans.

Which is probably why the Executive Condominium or EC came into being. This property type is a public-private hybrid. It enables homebuyers to take advantage of CPF Housing Grants while still enjoying condo facilities.

ECs also satisfy the aspirations of Singaporeans who would otherwise have sold their flats and upgraded to private property once they could afford it. In fact, it is the new deal in Singapore: For example, check out the latest new launch Hundred Palms Residences!

So should you buy an EC or just go the BTO route? Here are some things to consider.

1. Your EC will magically turn into private property after 10 years

The greatest draw of ECs is surely the fact that while they start out as HDB property, in 10 years’ time they will be officially recognized as private property.

Other than the bragging rights you’ll have for finally becoming a private homeowner, your flat could become a better investment, because you’ll no longer be bound by HDB restrictions on selling. You’ll be free to sell your flat to foreigners and PRs, and buyers will no longer be subject to HDB rules on who can buy and who can’t.

On the other hand, one disadvantage is that prospective buyers will not have access to CPF Housing Grants once your EC becomes private property, which could in turn have an impact on your sale.

Given Singapore’s demographic transformations over the past few years, it’s likely that in 10 years’ time there’ll be a higher proportion of foreigners seeking to purchase homes, which would work to the advantage of EC owners.

If you intend to rent out your property, you’re at an advantage once the EC becomes private property, because you’re no longer at risk of getting your home confiscated should you decide to, ahem, do something illegal like rent it out to tourists on Airbnb.

2. You pay less and are eligible for CPF grants

As ECs start out under the HDB umbrella, you are still eligible for CPF Housing Grants, assuming your income is low enough while still enabling you to afford the EC.

First-time applicants who are Singapore citizens and applying as a couple can get between $10,000 to $30,000 worth of CPF Housing Grants if their combined incomes are $12,000 and below.

Of course, another key draw is that ECs are usually priced significantly lower than full-fledged condos, but include all of the same frills including swimming pool, gym and whatnot.

3. If you’re part of the sandwiched class, you may not have many other options

The income ceiling for new HDB flats is currently $12,000, while the income ceiling for ECs is $14,000.

For people whose combined household income is $12,001 or $13,999, the only ways you can get your hands on a new home are to purchase an EC or buy a unit in a private development. The latter is obviously much more expensive, which makes ECs look attractive in comparison.

Of course, you’re still free to buy resale property on the public and private market. But 4- and 5-room HDB resale flats are often ridiculously expensive, frequently rivalling condo projects just a little further from the centre.

4. You get all the frills of a private condo

Even if your EC is still officially under the purview of HDB for the first 10 years of its life, you won’t feel like it, because ECs have all the frills of mass market condos, from totally unnecessary swimming pool waterfalls that nobody will use once age catches up with them, to blinding lights which waste electricity 24/7. It is nice to have a pool, tennis courts or a gym if these are things you actually use.

5. You won’t qualify if you’re single or can’t form the “right” kind of family unit

Sorry, if you’re not the type of Singaporean deemed worthy of purchasing public housing, you will be denied the right to purchase an EC. Singles can’t get in on ECs, at least not until 10 years later when they become private property, so that leaves only family units.

See more: In-depth Review of Hundred Palms Residences EC Singapore

Whether or not you are a resident of Hougang, you might have heard the buzz around the estate’s upcoming executive condominium (EC), Hundred Palms Residences.

Slated to be completed by 2020, Hundred Palms Residences stands out from the other ECs in Singapore by virtue of its excellent location.

For one thing, it is perhaps the most centrally-located EC in Singapore. Other ECs are typically located far from the Central Business District (CBD), in neighbourhoods like Choa Chu Kang, Sembawang and Woodlands.

Within five minutes’ drive to Hougang, Buangkok and Kovan MRT stations, as well as Serangoon MRT station and bus interchange, Hundred Palms Residences is one of the most conveniently located ECs in the market right now.

Going to work and play will be a breeze, with the Central Expressway, Kallang-Paya Lebar Expressway and other major roads within easy reach from the EC.

Rare EC in a mature estate

Apart from boasting a stellar location, Hundred Palms Residences is also one of the rare ECs in Singapore to be located in a mature estate.

Residents can enjoy the lifestyle perks of living in an established suburban estate with a plethora of amenities in the vicinity.

Within walking distance of the EC are neighbourhood shopping malls Hougang 1 and Hougang Village. There is also Ci Yuan CC, which has plenty of recreation and F&B options — some food stalls here even operate around the clock.

Within minutes’ drive, residents would be able to reach nex, Hougang 1, Chomp Chomp Food Centre and the Serangoon Gardens food enclave, Seletar Mall, Compass One and Ang Mo Kio Hub.

Adding to this well-rounded mix of modern shopping malls and heartland offerings is the up-and-coming lifestyle enclave of Kovan.

In recent years, it has been transformed into a buzzing dining scene filled with cafés, bakeries and restaurants. Indeed, some have noted the increasing expatriate population, with the potential for it to become the next Tiong Bahru or Holland Village lifestyle district.

Fit for nature lovers

Apart from great food, shopping malls and everyday conveniences, Hougang is also shaping up to be a top destination for fitness buffs and nature lovers.

With a swimming pool, gym, sports hall and stadium, the nearby Hougang Sports Centre can meet the fitness needs of the entire family.

Outdoor recreation options in the area include Buangkok park connector, Punggol Park and Serangoon Riverside Park. Residents can take a breezy trip on the bicycle lane that surrounds the residences and extends within, where many bicycle lots will support eco-friendly living.

Moreover, residents can look forward to upcoming community spaces along Hougang’s waterways as part of the Public Utilities Board (PUB)’s Active, Beautiful, Clean Waters project. There will be more greenery at these locations, with a fishing spot built along the edge of Serangoon Reservoir.

Top schools nearby

Families would also be pleased to note the variety of good schools in the area, including Rosyth School.

In fact, a child’s academic journey from pre-school to higher education would be well covered here, with My First Skool, Ximin Primary and Secondary School, Nanyang Polytechnic, Serangoon Junior College and more nearby.

An ideal EC for families

As you might guess from its name — Hundred Palms Residences really does have over 100 palm trees on site — residents will be able to enjoy a resort-like lifestyle at this EC.

The EC has full condo facilities including a two-storey clubhouse, gym, function room and 50m lap pool. A jacuzzi pool, steam room, aqua gym, floating yoga deck and a therapeutic wellness pool add to the variety of R&R options here.

Kids will love the water-related facilities, which include a lazy river, kid’s pool and a bubble pool for toddlers.

In addition, families will have plenty of opportunities to hold gatherings and bond over teppanyaki grill or BBQ parties, or games at the basketball and tennis courts.

Residents will not only enjoy the EC grounds, but more importantly, find that they have ample space in their homes. The development offers a range of three- to five-bedroom units, some of which are equipped with kids- and elderly-friendly facilities for multi-generation living.

Hundred Palms Residences is integrated with the latest smart home technology, which allows residents to manage their living space through their mobile devices — paying maintenance fees through your phone, instant facility booking 24/7, easily viewing home security camera, and controlling door access, lighting and air-conditioning remotely.

Investment potential

Hundred Palms Residences EC is not just an ideal place to live in and raise a family — it also presents an attractive investment option.

Privatised ECs, or those that have crossed the 10-year mark and can be sold without any restrictions, remain highly sought after, with many registering considerable price gains.

This is especially the case for ECs in mature estates such as Bishan, Bukit Batok and Ang Mo Kio. This means that ECs are set to become rarer.

 See more: Prices, Specifications & Details about Hundred Palms Residences

For more information, you may also want to contact the developer sales hotline:

In Singapore, buying a HDB flat is one of the major financial decisions that most of us have to make, and usually requires a housing loan. As such, being familiar with the various housing grants available is important, as it can potentially help you save quite a sum of money.

In this article, we will explain the different housing grants available, the eligibility criteria for them, and how much Singaporeans can expect to receive.

Read Also:  Why Hundred Palms Residences Can Be A Good Buy

# 1 Additional CPF Housing Grant

Grant Amount: Up to $40,000

Who is eligible: First-time homeowners buying new or resale flats, income ceiling of $5,000

Meant for lower and middle-income families, the Additional CPF Housing Grant (AHG) allows families buying their first HDB flat to receive a grant of up to $40,000. This grant can be used for the purchase of both new and resale flats.

To qualify for this grant, applicants have to meet the following conditions.

One: At least 1 of the applicants must have worked continuously for 12 months prior to the flat application, and still be employed at the point of flat application.

Two: Monthly household income up to $5,000. Actual grant given will depend on actual income, with lower-income households receiving a higher amount.

Source

Scenario 1:

It is possible that one applicant may have been working continuously for more than a year, while their partner is still in school, or is not working. Under such circumstances, homebuyers will qualify for the grant if the gross income of the person working is $5,000 or less.

# 2 Special CPF Housing Grant

Grant Amount: Up to $40,000

Who is eligible: First-time homeowners buying 4-room or smaller BTO flats in non-mature estates, income ceiling of $8,500

Similar to the AHG, the Special CPF Housing Grant (SHG) is a grant designed to help lower and middle-income families in Singapore buy their first HDB flat. However, the SHG can only be used for the purchase of 4-room or smaller new flats in non-mature estates. The SHG is given on top ofthe AHG, which means homeowners can enjoy both grants if they are eligible.

The following conditions must be met.

One: Similar to the AHG, at least 1 of the applicants must have worked continuously for the 12 months prior to the flat application and still be employed at the point of flat application.

Two: Monthly household income of up to $8,500. Actual grant given will depend on actual income, with lower-income households receiving a higher amount.

Three: As stated above, the SHG is only applicable for those buying a 4-room or smaller new flat in a non-mature estate. It’s not applicable for resale flats, new flats in mature estates, or 5-room or larger new flats in non-mature estates.

For those who are potentially eligible for the SHG (i.e. combined monthly income up to $8,500), you may want to consider applying for a 4-room or smaller new flat in a non-mature estate to enjoy the SHG.

Here is a screenshot from the HDB website that shows the total grant one can expect to receive from both the AHG and SHG. For those earning $1,500 and below, they can receive as much as $80,000 in grants!

Source

Scenario 2:

Both applicants are working and have a combined monthly household income of $4,000. As such, they are entitled to a grant of $15,000 from the AHG.

If they were to apply for a 4-room or smaller new flat in a non-mature estate, they will enjoy an additional $40,000 grant from the SHG.

# 3 CPF Housing Grant (Updated On 5 March 2017) 

Grant Amount: Up to $30,000 Up to $50,0000

Who is eligible: First-time homeowners buying resale flats or Executive Condominiums, with an income ceiling of $12,000

For those who choose to buy a HDB resale flat or Executive Condominium, there are also housing grants available.

One of them is the CPF Housing Grant for resale flats. It provides first-time homeowners earning up to $12,000 and buying a resale flat a grant of $30,000 $50,000 for 4-room and smaller flats and $40,000 for 5-room or larger flats. If your monthly household income is $5,000 or less, you could also apply for the AHG.

For those considering an Executive Condominium (EC), they are also able to apply for the CPF Housing Grant. The full grant amount of $30,000 is given for households with a monthly income of $10,000 or less. Household with a monthly income of $10,001 to $11,000 will receive $20,000, with $10,000 given to households with a monthly income of $11,001 to $12,000.

Scenario 3:

A family with a combined monthly household income of $4,500 a month that buys a resale flat would be eligible for the CPF Housing Grant of $30,000, and the AHG of $10,000. In total, they will receive a total grant amount of $50,000.

# 4 Proximity Housing Grant

Grant Amount: $20,000

Who is eligible: Homeowners buying resale flats in the same town or within 2km of where their parents are staying, or who will be living in the same flat.

If you are buying a resale flat in the same town or within 2km of where your parents are staying, or are intending to stay with them in the same flat, you will be eligible for the $20,000 Proximity Housing Grant (PHG).

For first-time homebuyers earning up to $12,000, the PHG is given in addition to the CPF Housing Grant and the AHG.

Unlike the CPF Housing Grant and AHG, the PHG does not have an income ceiling and is not restricted to just first-time homebuyers. This means that almost all homebuyers will be helped when buying a flat to live with or close to their parents for mutual care and support.

Scenario 4:

A family with a combined Monthly household income of $5,000 a month that buys a resale flat within 2km of where their parents are staying would be eligible for the following grants:

Consider The Grants You Are Eligible For To Make The Right Housing Decision

The various grants available can help us substantially reduce the cost of buying our first home. As such, it makes complete sense to first understand what all these grants are, and to have a discussion with your partner on how these grants could help you in deciding the type of flat that you should go for.

See Condos In Singapore Now: www.condotown.sg

Article reference site: http://dollarsandsense.sg/

Seaside Residences and Arta was the two major projects that hit in market in the previous month, latest numbers from URA has shown. The lack of new launches in May contributed to the drop in Sales.

Despite the slowdown, newly launched projects managed to find buyers in several areas. Parc Riviera was the leader the in private condominium sector with 83 units sold at a median price of $1246psf, followed by The Santorini (64 units, median price $1,022 psf), Commonwealth Towers (53 units, median price $1,841 psf), Kingsford Waterbay (51 units, median price of $1,162 psf)

Executive condominium (EC) units, a public-private housing hybrid did not disappoint. Sol Acres EC was the best selling residential project. It is a newly sought after development in Choa Chu Kang,moving 115 units at a median price of approximately $794 psf.

June sales activity is expected to hold up despite the June School holidays.

However, several developers are launching major projects July – Hundred Palms Residences EC situtated next to Serangoon North along Yio Chu Kang Road, Martin Modern in Martin Place, and also expected to launch in Bukit Batok is Le Quest, all 3 projects expect to yield a total of 1,497 homes.

In July, sales volume are also expected to rebound as these projects are put up for sales to the public, and typically, buyers demand do pick up lunar seventh month (22nd August to 19th September) – as this period is considered inauspicious by the Chinese for making assets, especially property purchases.

Prices of ECs in less stellar locations have also rallied ahead of private condos. Take The Quintet EC in Choa Chu Kang, which was launched in 2003 at an average price of $367 psf. Prices have increased 110% to an average of $769 psf this year. In comparison, prices at The Warren, also in Choa Chu Kang, increased 76% from $445 psf to $781 psf over the same period. The Warren and The Quintet were completed in 2004 and 2006, respectively.

Some notable EC launches in Singapore 2017 include:

• Hundred Palms Residences
• To be updated