Tembusu Grand, a luxury residential development by City Developments Limited, made waves in the property market when it launched amidst uncertainty in the real estate industry. Tembusu Grand sold 53% of its unit on launch day! That's roughly 350 units with the majority going for 1 bedder, 2 bedders, and 2 plus study units. About 20% of the units are 3 bedders and 3 plus study, while the rest are 4 bedders.
Despite the challenges posed by the after-effects of the pandemic, which include ongoing rising interest rates and potential economic crisis and recession following the chain shutting down in the banking industry, the project garnered strong sales and received positive reviews from buyers and investors alike.
We know that the banks were closing down one after another in the US, and rumours of recessions loom amongst the folks. So, what made Tembusu Grand such a success?
1) Tembusu Grand is situated in District 15, a highly sought-after residential neighbourhood, surrounded by an abundance of amenities, including top schools, shopping malls, and with a wide plethora of existing yummy atas foods and exotic cafes. You would think that a location like this has no more future plans, right? Wrong. In fact, it doesn't have just one, but 7 amazing upcoming developments in the surrounding that will boost the value of your property. I'll be doing an article in the future to cover this, so do stay tuned to that! Its proximity to the Central Business District and Changi Airport also made it an attractive choice for buyers who value convenience and accessibility.
2) On a longer horizon, the economy will always grow larger than in the last decade. Agree? Warren Buffet once said -
"If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes."
Like any form of safe investment, property investment is also a long-term process, and in a longer horizon, since you agreed that the economy can only grow larger like the ever-expanding universe, then in the grand scheme of things, how do you think would property prices react?
In 2017, Morgan Stanley, a multinational investment bank stated that Singapore's property prices will double by 2030 amidst a downtrend.
The following year, DBS said the same. As of today in 2023, we are almost there. Will the economy continue to grow in 2030? And if so, will property prices continue to grow as well?
3) Singaporeans are investing-savvy, thanks to great YouTubers like @KelvinLearnsInvesting, or @thefinancialastronaut. This is why, when a project like Tembusu Grands ticks all 7 checklists that befit a good investment, people go for the grab without hesitation. Hmm? What are 7 checklists? I talk about the important criteria for finding a suitable and good investment or own stay unit in my YouTube Channel.
First of the tripartite major developments in District 15 in 2023, the land cost for this Government Land Sales (GLS) is only at $1,302 psf ppr - and with rising construction cost, manpower cost, and materials cost - the breakeven cost are roughly in the $2,xxx psf ppr. As you can see, the surrounding 99-year leasehold projects also sold on an average of $2,4xx range 1 year ago. Tembusu Grand today sold at an average of $2,465 psf! This is the same as 1 years ago!
4) The final pull factor that I wanna talk about today is the fact that you pay less interest in a progressive payment until you collect your keys. This helps reduce any stress in these uncertain times when you don't know if interest rates will rise higher. Speaking of interest rates, I dived deep into fed rates research and what may happen for 2023, I'll leave the link here.
City Developments Limited‘s reputation for quality and attention to detail was another factor that contributed to the success of Tembusu Grand. With a proven track record of delivering premium properties that meet the needs and expectations of buyers, City Developments Limited has established itself as a trusted developer in the industry. This reputation, coupled with the strong demand for high-quality residential properties, helped to generate buzz and interest in Tembusu Grand.
Tembusu Grand's unique and innovative design played a significant role in its success. The development's contemporary architecture, coupled with thoughtful interior layouts and high-end finishes, set it apart from the competition. Buyers were drawn to the luxurious yet functional living spaces that offered an unparalleled living experience.
In summary, Tembusu Grand's success can be attributed to a combination of factors, including its prime location, innovative design, and City Development Limited’s reputation for quality. Despite the uncertainty in the property market, buyers were attracted to the development's unique value proposition, resulting in strong sales and positive reviews. As the real estate industry continues to evolve, it is clear that properties with exceptional value propositions and unique selling points will always find a receptive audience.