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Kingsford Group, a Chinese developer, managed to sell 696 units (76%) out of 916 units at Chuan Park on Sunday, Nov 10. The average price per square foot (psf) of units sold was approximately $2,579.
According to a Kingsford spokesperson, the units that were sold ranged from two-bedroom, two-bedroom+study, and three-to-five-bedroom units. Singaporeans made up 93% of the buyers while permanent residents and foreigners accounted for the remaining 7%.
The majority of the units sold at Chuan Park were two- and three-bedroom units, making up about 92% of the total units sold. The remaining 8% were four- and five-bedroom units, according to Ismail Gafoor, CEO of PropNex. The transacted prices ranged from $1.6 million for a two-bedroom unit to $4.3 million for a five-bedroom unit. Ismail also commented that the developer had priced the project sensibly, considering the strong demand, especially from buyers in District 19.
Emerald of Katong, another project, also saw high demand, with 10,000 visitors during the Deepavali weekend.
Commenting on the sales, Marcus Chu, CEO of ERA Singapore, noted that the two- and three-bedroom units were the most popular choices among buyers in their 30s and 40s. He also mentioned how many buyers were trading up from older HDB flats or condos in nearby areas. For older buyers looking to downsize from landed properties, they tend to choose the larger four- or five-bedroom units.
With the sale of 696 units, Chuan Park has emerged as the top-selling project of 2024 so far, beating out Lentor Mansion, which sold 400 units (75%) in March. In terms of percentage of units sold, Norwood Grand, which launched in October, has the highest at 84%, or 292 out of 348 units.
Mark Yip, CEO of Huttons Asia, pointed out that besides being the best-selling project of 2024, Chuan Park is also the fastest-selling since J Gateway, which sold all 738 units on its first day of launch in 2013.
This success marks another significant achievement for Kingsford. In January 2021, their 1,862-unit Normanton Park project sold about 600 units on the first weekend of its launch. Remarkably, all units were entirely sold within 18 months.
In July 2022, Kingsford acquired the 99-year leasehold, 400,500 sq ft Chuan Park site for $890 million. The site is adjacent to Lorong Chuan MRT Station and marks the first private condominium launch in the area since the 468-unit The Scala’s debut in August 2010.
Chuan Park has five blocks, three with 22 storeys and two with 19 storeys, and two commercial units spread across a 99-year leasehold site of 400,500 sq ft. The 916 units range from two- to five-bedrooms, ranging from 700 sq ft to 1,841 sq ft.
Prices started from over $1.5 million for a two-bedroom unit, upwards of $2.1 million for a 915 sq ft three-bedroom unit, $3.1 million for a 1,335 sq ft four-bedroom unit, and $3.7 million for a 1,550 sq ft five-bedroom unit.
Chuan Park is located within an affluent private residential enclave, surrounded by the Serangoon Gardens, Li Hwan, and Tai Hwan landed housing estates, as noted by PropNex’s Gafoor.
Even though Chuan Park is classified within the Outside Central Region (OCR), it is near the boundary of the Rest of Central Region (RCR). Ken Low, the managing partner of SRI, pointed out that it is near “million-dollar HDB estates,” including Serangoon, Toa Payoh, Ang Mo Kio, Bishan, and the emerging Bidadari Estate. ERA’s Chu estimated that there are around 126,000 HDB flats and 54,000 private residential units in “the Golden Triangle of Ang Mo Kio/Bishan, Toa Payoh, and Serangoon around Chuan Park.” Based on ERA’s research, there were 233 HDB flats sold for over $1 million in the first 10 months of 2024 in the nearby HDB estates of Ang Mo Kio, Bishan, Toa Payoh, and Serangoon. Chu also mentioned that these HDB owners are in a good financial position to upgrade to private residential properties if they wish to.
Chuan Park is located next to Lorong Chuan MRT Station and is surrounded by the landed housing estates of Serangoon Gardens, Tai Hwan, and Li Hwan. The launch of Chuan Park was highly anticipated this year, according to Huttons’ Yip. During the preview period from Deepavali Day (Oct 31) to Nov 7, over 20,000 visitors came, with more than 2,800 cheques collected from interested buyers ahead of the sales launch on Nov 10.
Originally scheduled for Nov 16, the launch of Chuan Park was brought forward to Nov 10. SRI’s Low mentioned that this allowed investors and homebuyers to spread their demand across various new developments. Three other projects are set to launch on Nov 16: the 552-unit Nava Grove at Pine Grove, off Ulu Pandan Road; the 846-unit Emerald of Katong on Jalan Tembusu in the East; and the 504-unit executive condo Novo Place in Tengah in the West.
Low anticipates that the strong sales at Chuan Park will carry over to the upcoming launches next weekend, building upon the existing interest in these projects. “We are also seeing buyers gravitate towards other ongoing new launches,” he added. “This momentum provides a welcome boost to an otherwise subdued 2024 market.”
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The recent interest rate cuts by the US Federal Reserve, with further cuts expected next year, have also boosted confidence and demand in the real estate market. According to SRI’s Low, there will be increased affordability as banks lower their stress test rates. Additionally, homebuyers will benefit from savings on monthly mortgage payments due to the reduced interest rates.
PropNex’s Gafoor also commented that the improved market sentiment has encouraged even those homebuyers who were hesitant during the first nine months of the year to return. However, he does not expect all upcoming project launches to see similarly strong sales. “In addition to the development’s specific attributes, factors such as location, proximity to MRT stations, nearby new launches, and price sensitivity play a crucial role in a project’s sales performance.”…