I am looking to buy a Condo in Coco Palms project, however, the price has went up a bit lately. From my understanding, the cheapest PSF is going for $1273PSF. Is this a good time to enter now or should I wait till the TOP period? As there are still a remaining 15 units left by the developer and developer will have to incur additional cost or penalty as they have to sell all their units during the contract period. I am a bit confused here. Assuming that come June 2018, the TOP period. If CDL still could not sell the remaining unit, do they pay the penalty based on the 15 units? If they have to pay a penalty, can I ask the developer for another 5% discount? Will they agree? Can any property guru explain to me Under the QC rules, developer has to sell all its unit within 2 years of TOP?
To my understanding it is not affected by QC or ABSD if their units can't be offloaded by a certain period, as such regulations were not in place when CDL acquired the land many years back. Even if they are affected by QC, 15 units holding costs are not really significant, its more likely to sell out before QC kicks in.
It appears the market sentiment is heading for a more bullish trend, we can try for discounts but chances maybe not be high as developer may think they can get a higher price down the road. Its only a matter of time before the project sells out its balance 15 units. After all it is a quality product near MRT by a top developer.
Are you only looking at brand new project in Pasir Ris near MRT? If so, unfortunately or fortunately this is the only option. Getting resale might get you a relatively better price point if you are willing to open to this option.
May I have more info and requirements about your plans so to make better recommendations? Thanks and look forward to value-add to your housing plans.
Ivan Ng ERA ASAP
(ASk Anything Property)
Proactive. Sincerity. Feedback.
SMU BBM (Finance), Magna Cum Laude
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I am not looking for a textbook answers, but a rather straight forward answer whether they are affected or not affected. We are not talking about confidence interval or doing any hypothesis testing, it is pretty straightforward that Coco palms is not affected by QC because like the previous agent put it, they bought the land in 2008. They are not affected by ABSD because they are not foreign developer.
May I know what is Magna Cum Laude?
(1) Current market sentiment for private property is on an uptrend.
Although our leader urge the developer not to buy high and sell high. Personally don't think that can happen in commerical market, but properly in charity.
(a) GLS selling price hits record high
(b) En-bloc prices hits record high
(2) The projects that meets ABSD or QC, did not give any discount for any unsold units for individual buyer, but for bulk purchase buyer.
(a) There are cases where buyer buys up all the remaining units (15 of them).
(b) There are also cases developer paid the ABSD, CDL is one of them.
(c) There are cases where developer de-list from Singapore Stock Exchange to escape QC penalty.
So if your intention is to negotiate a discount from developer later based on the above reason. The chances of success is quite slim.
(3) ABSD &/or QC
(a) From late 2011, the ABSD rule is developer has to develop & sell off all unit within 5 years from the day they bought the land.
Failing this, developers are to apy ABSD of 10% on purchase price of the site. (CDL/Hong Leong bought this land in 2008)
For sites bought on & from 12 Jan 2013 onwards, they have to incur higher ABSD of 15%.
(b) Qualifying Certificate (QC): Extension charges Pro-rated charges based on no. of unsold units.
(Coco-Palms developer is not affected by this). This only affects foreign property developers.
(i) A site must be developed & completed within 5 yrs after bought.
(ii) All units have to be 100% sold within 2 years after completion.
Max Extension is 3 years:
1st yr: 8% of land purchase price
2nd yr: 16% of land purchase price
3rd yr: 24% of land purchase price
Hope the above answer to your main concerns, but if there are more queries, please feel free to contact me at 90110636 , or email: firstname.lastname@example.org if more information is needed.
I'll be glad to assist.
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Thanks Ling, this helps a lot!
Coco Palms is not affected by QC and ABSD. Hence, the Developer is not in a hurry to sell off their units.
With the recent bullish sentiment of the market, the chances of Developers increasing prices is high. If you wait until TOP to purchase, you may risk:
1) paying a higher price for a unit.
2) all units being taken up before it TOP.
As such, I would like to ask what's your objectives in the purchase? Are you looking to shift in for own stay? Or is this for investment purpose? This will determine whether should you go for a unit now, or to wait.
Should you need any further assistance in matters relating to property, please contact me at my mobile 9748 6305 . I will be happy to assess and share with you the possibilities for you in the current market.
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I would like to invest. Although I find the current price still attractive, I am hoping to enter at a lower price. I have seen the Condo from outside and even the opposite blocks and some pictures online, I must admit that the design is very resort style and stunning. I strongly believe that the pricing will go up in future, and I will be able to make some handsome profit, however, I also hoping that CDDL will succumbed to temptation to sell the remaining 15 units at a huge discount, since it is a cost for them to continue operating the show flat.