Developers roll out deferred payment schemes, price cuts in Jervois
Aspiring keen buyers who are looking for already completed and with estate in perpetuity tenure aka freehold luxurious high-end private homes with prestige address will be delighted to know that there are options available along Jervois Road. These development are of the following by the developers: Fragrance Group’s 36-unit Jervois Treasures, Midas Land’s 43-unit Jervois Prive and SC Global Developments’ 55-unit Petit Jervois.
Petite Jervois by SC Global is the first of the three projects to launch post-completion in the Petit Collectible series. The development boasted a flexible layouts that geared towards attracting the young and affluent individuals.
Petit Jervois which obtained TOP in March 2K22 features a one of its kind not so city-like flaire by Rene Tan of RT+Q Architects, the Designer of the Year who won the award at the President’s Design Awards 2K16. Seven Palms Resort Management, the estate management arm of SC Global Developments, managing agent for the property.
The Certificate of Statutory Completion (CSC) for Petit Jervois was achieved in October 2K22, the developer is no longer under the scope of the Housing Developers (Control & Licensing) Act. Hence, the developer has greater flexibility and creativity with its own unique set of advertising strategy for Petit Jervois.
A deferred payment scheme for Petit Jervois was launched by SC Global in late 2K22. Purchasers are required to only make a payment of 10% deposit of the purchase price and defer the purchase completion (exercise date of the option to purchase). Since then, the project has been almost sold out, with final last balance two units.
Comprising of only two five-storey blocks of primarily one- and two-bedroom units with sizes from 581 sq ft to 1,012 sq ft, Petite Jervois comes 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 2k22, as per caveated results.
The average price achieved for Petit Jervois is $2,723 psf.
Jervois Treasures, the five-storey condominium designed by RSP Architects, is just directly Across the road from Petit Jervois. CSC obtained when the project completed at the end of March 2K23. Brilliance Capital was appointed by Developer Fragrance Group as the sole marketing agency for Jervois Treasures’ post-completion launch.
Buyers were offered Deferred Payment Scheme (DPS) with the option to defer the completion by 12 or 24 months by the Developers. “cash-flow challenges encountered by buyers will reduced or diminished with such flexible scheme , including those who are buying in trust,” says Sammi Lim, founder and executive director of Brilliance Capital.
“Buyers who are either investors and or both owner occupiers have the flexibility to secure an apartment while interest rates remain elevated under this DPS. They are not require to lock in their loan rates until a year or two from now when interest rates have stabilised.”
Developments in the Core Central Region (CCR) Traditionally have significant exposure to foreign demand, says Wong Xian Yang, head of research for Singapore and Southeast Asia at Cushman & Wakefield.
With the recent government instrumented implementation of property cooling measures that took effect on April 27, where additional buyer’s stamp duty (ABSD) for foreign homebuyers doubled to sixty percent, will have “a cooling 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.
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 digestable and easy on one’s pocket 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 top notch branded and fully equipped kitchen appliances, including a dishwasher and washer-dryer featuring the French brand DeDietrich. “The units are both functional and practical,” says Lim.
owner-occupiers need only make a 10% down payment Under the DPS and they can move in almost immediately. the developer could also furnish and fit out the one- and two-bedroom units in the style of the show suite with eighty thousand to one hundred thousand dollars more.
With a ready pool of tenants, the developer can fit out and furnish the units for investors too who are looking to lease out their units. 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 three percent, 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 2K20. The other was the three-bedroom duplex penthouse of 1,496 sq ft that went for $3.398 million ($2,271 psf) in February 2K21. Both buyers were said to be Singaporeans.
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. some could also Alternatively purchase an investment unit to hedge against inflation in the 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.
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.
Yip Yuen Hong, founder and principal architect of ip:li Architects, is The design architect for the five-storey Jervois Prive. Similarly he is also the design architect for GuocoLand’s luxury condos The Modern series 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 2K17. 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 2K17. Fragrance Group purchased the former Lotus @ Jervois for $46.3 million ($1,683 psf ppr) in March 2K18.
The three sites were purchased before the July 2K18 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.
developers ABSD potentially doubled to 30% (5% is non-remissible) in July 2K18; in December 2K21, it was raised to 40%, of which 5% is non-refundable.
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.”
His strong affirmation in “the long-term investment potential and capital appreciation of [Jervois Prive]”, which he describes as “a consciously well-thought of designed, well-built freehold development in the prestige Jervois-Tanglin district”.
As part of the project’s “TOP launch”, Jervois Prive is offering buyers a 2% discount, with prices starting from $1.5 million or $2,756 psf.
Jervois Prive have transacted seven units, 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.
Even though Jervois is near the GCB area of Mount Echo Park, Bishopsgate and Chatsworth, The Jervois neighbourhood has been overlooked by homebuyers, even. “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 2K21, 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. a fortnight later, prices increased, and 74 units were snapped up at prices ranging from $2,241 to $2,898 psf. 104 units have been sold up to date with an average of $2,558 psf. The developer is holding the remaining units for passive rental income.
Jervois Mansion is currently under construction and is targeted for completion in 2K26. 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.
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.”
More foreigners could be pushed into the rental market now that the ABSD for them has doubled with the latest cooling measures. Ho expects rental demand in District 10 to increase, translating to improving rental yields.
It is getting significantly challenging and harder for developers to buy freehold land at attractive prices in the CCR, says Ho, especially with the continued increase in cost for land, labour and materials.
With the limited land 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.