Lumina Grand Review – Can buy or bye-bye?
In today’s discussion, I am going to talk about an upcoming new Executive Condominium in District 23. This condo is known as Lumina Grand in Bukit Batok.
For those who have been following my channel. You will realize I am a big fan of EC. Why? Confirm make money. Still, need to say so much? Well, if you want to make money from EC. You need to clear a few conditions first. It is not so straightforward. Plus, can you still make money from EC today? Watch on to find out more.
Lumina Grand - Site Details
Firstly, let’s talk about its name. Lumina is derived from the Latin word – Lumen meaning bright and it is also a measure of brightness. Hence, Lumina Grand is a luxury EC that boosts new standards of green and smart features. Its tagline is called LIVE GREENER, LIVE BRIGHTER.
So much for the name, let go straight into the project information. This site is located along Bukit Batok West Avenue 5. It is next to the 88% sold Altura which is also another EC that was launched last year.
This is a 99-year government land sales tender that attracts a total of 4 bidders. The winning bid was placed by City Development Limited. This is followed by Sim Lian, Hong Leong, and Qingjian Reality. They are all familiar names in developing EC.
There are a total of 10 blocks, 2 blocks of 12 storeys, and 8 blocks of 13 storeys high. There are a total of 512 units with a mixture of 3, 4, and 5 bedrooms. The vacant possession date is expected to be around 31 March 2029.
This is the typical floor plan. We have the smallest 3 bedrooms from 87sqm.
They come with 3 bedrooms and a balcony fronting the living room. They are mainly located facing the HDB flats at the back and some along the main road. These are the units that are mainly sourced by budget-conscious buyers.
If you have a better budget. The 3-bedroom premium will be more comfortable to live in. It measures 90 to 91 sqm. The difference is only an extra toilet in the kitchen and an entry foyer near the entrance for more privacy.
Next will be the 4 bedrooms from 106sqm. There are 4 bedrooms and 3 bathrooms. This is suitable for those with bigger or extended families. There is also a wet and dry kitchen plus a walk-in closet for the master bedroom. The living room is also widened.
Lastly, we have the 5 bedrooms from 139sqm. 4 of the bedrooms are facing the front and the last bedroom is facing the back. There is everything you need from a wet to dry kitchen to an entry foyer to a walk-in closet. If you have the budget. You should consider this. I think it makes a very comfortable living space.
So much about the project details. Let’s head straight to the SWOT analysis.
Over the years, we can see that CCR prices increase a little until they start to drop during Covid-19, before they slowly increase again. On the other hand, the OCR prices have been on an uphill climb over the past years until they narrowed the CCR prices in 2021. This is no doubt the very same year when the property market started to recover from the pandemic. Subsequently, the OCR average prices stand at $1,855psf whereas CCR is $2,210psf. This means resale condos in the CCR are selling at a 19% premium against their OCR counterpart.
Here, if we compare them over the past 10 years. CCR prices have appreciated only 8% whereas OCR prices have increased 79% to date. This is an extra 71% bull run! Can this bull run continue? Or is it time for undervalued CCR to play catch up especially so after you have watched this video and taken massive action?
Strength
Wow. I have a lot to say about Lumina Grand leh. Firstly, it is developed by CDL. Singapore’s most trusted developer with 60 years of proven track record. It is led by Mr Kwek Leng Beng’s son, Shermine Kwek. I realize CDL is pretty aggressive in recent state tender after their unfortunate write-off in China.
Sidetrack here. China is not so easy. In Hokkien, there is a saying-没有这么容易. For those who are keen to venture into China. Let me share with you a tip. Go slow. Understand the ground and acquire talent. Especially those that have a huge presence there. Else appoint retired generals as advisors. Who know one day you can build another Kai De Ji Tuan.
Secondly, this site is a minute’s drive to 2 major business hubs – Jurong Innovation District and Jurong Lake District, as well as the upcoming Tengah Town and its amenities and schools. Thirdly, it is convenient access to three MRT stations – Bukit Gombak MRT station, the upcoming Tengah Plantation, and Tengah Park MRT stations which are estimated to be completed in 2028.
Fourthly, it is near to the future Anglo-Chinese Primary School. I think this is a good move by MOE to relocate popular schools to the heartland. This is one good example of inclusiveness in Singapore. This is a good example of the Forward Singapore Exercise.
Weakness
As mentioned in the introduction of my video. If you want to buy an EC. You need to fulfill some conditions. You must form a Singapore household to be eligible to book a unit.
Your income must also be high enough to take a loan due to the stringent MSR ratio. You must preferably have a combined income of at least $12,000 and above. Anything less than that. Then you must ask your papa and mummy for financial assistance. For the cheapest EC. The downpayment and other fees will add up to easily half a million dollars in cash or CPF That is why. If you want to make money from EC. You must first have money to make money first.
The $16,000 income ceiling is also a killer for most eligible buyers. You will be surprised. There are many high-income earners in Singapore. Once you breach that amount. You will not be eligible and I welcome you to the resale market.
For EC. HDB regulates that 70% of EC units are set aside for first-timers during the initial launch period. This means if you are a second-timer and hope to secure the better or cheapest unit. You can kiss goodbye. Be prepared to go for the 4 and 5 bedrooms to stand a chance after one month.
Share with you a little secret. Do you know those who bought 4 and 5 bedrooms make the most profit after MOP? Think about it. How many 4 and 5 bedrooms are there in Singapore? Not many. Mainly in EC.
Opportunities
If you are looking for a new home in the West and you want the convenience and yet near the action is. No doubt. Lumina Grand offers you a lot of opportunities in the future. Look no further at the URA Master Plan. There are 2 blue sites which are zoned as both commercial and residential. These are big sites and I assume they will be carved out into smaller sites in the future.
Anyway, you get the idea. The same theory is behind the Tampines mixed development site and the EC site next door. If your eyes got stamps and cannot the completed project. Just go to Sengkang Grand Mall and look at Esparina EC next door. I think I have mentioned this a few times in my video before. I called this the “Mixed development spillover effect” You confirm big Huat.
Let’s assume CDL priced Lumina Grand at 5% higher than Altura’s average selling price of $1,433psf. This works out to be $1,500psf. This means Lumina Grand’s selling prices are still relatively attractive.
In addition, nearby new homes are already trending up to $2,800psf. How to go wrong at almost half the price? You get the idea. This one is another big Ang Bao from our government. Grab it if you can.
Threat
Here, I only have a few concerns. Firstly, it is the timing of the market. The property market has been at its highest level in recent years. Can it go higher? Nobody will know. However, the low entry prices of an EC as compared to a typical condominium would have built in some buffer for any price appreciation in the future.
Secondly, there is another upcoming launch near Jurong Lake. This condo is known as SORA and is a project by CEL and SingHayi. It will be launched soon. However, this is an enbloc site and a private condo. The breakeven is higher and the expected selling prices should be above $2,100psf.
There is also another upcoming EC along Plantation Loop that was sold to a joint venture between Hoi Hup Realty and Sunway Developments at $1,292psf ppr. This is 9% higher than Lumina Grand. If Lumina Grand is going to sell for $1,500psf. This means this EC that is going to be launched only in 2025 will fetch $1,600psf. Clap clap clap. This one confirms a big huat.
Can buy or Bye-Bye?
In summary. Can buy it or bye-bye? Got money go and buy. MaiTuLiao. No money go buy BTO flats. At night can sleep very well and can make more babies.
Very expensive! Yes. Nothing is cheap today. This is the best bet if you are eligible to buy and fulfill all conditions. Faster go raise money. This is your best route to enter the private market for the more privileged ones.
Some of you here may ask me. Can make a lot of money next time after MOP? Well, my answer is. Don’t expect to make a lot of money as compared to those that have bought a decade ago. This is a different era. But I am very sure. You wouldn’t lose money buying EC if you hold it until MOP.
Here, If you have plans to consider this project. My company is the appointed marketing agent. Please register your interest with me so I can do a financial calculation for you first. The show flat will be open from 12 to 22 January. Anyway, prices will be released on the 24 to 25 January and balloting will be conducted on 26. Booking will be done on the 27 January. Right before Chinese New Year.
