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On Sunday, November 10, Chinese developer Kingsford Group successfully sold 696 units out of a total of 916 units at Chuan Park, accounting for 76% of the project. According to a Kingsford spokesperson, the average selling price of the units was approximately $2,579 per square foot.
The units sold included two-bedroom, two-bedroom+study, and three-to-five-bedroom units, with Singaporeans making up 93% of the buyers. Permanent residents and foreigners made up the remaining 7%.
Of the units sold, 92% were two- and three-bedroom units, while the remaining 8% were four- and five-bedders. According to Ismail Gafoor, CEO of PropNex, the prices of the units ranged from $1.6 million for two-bedroom units to $4.3 million for a five-bedroom unit. “Overall, we believe the developer has priced the project appropriately, given the overwhelming demand from potential buyers in District 19,” he said.
Chuan Park’s sales as of November 10th (Source: Property Agents)
This makes Chuan Park the best-selling project of 2024 in terms of number of units sold, surpassing the 400 units sold (75%) at the 533-unit Lentor Mansion in March. However, in terms of percentage of units sold, Norwood Grand, which launched in October, remains the leader with 84% of units, or 292 out of 348 units, sold.
According to Marcus Chu, CEO of ERA Singapore, two- and three-bedroom units were the most popular among buyers, most of whom were in their 30s and 40s. He notes that many of the buyers were upgrading from older HDB flats or condominiums in nearby areas. “On the other hand, older buyers who are downsizing from landed properties tend to prefer the larger four- or five-bedroom units,” he adds.
Chuan Park’s sales as of November 10th (Source: Property Agents)
Chuan Park is the first private condominium to launch in the area since the 468-unit The Scala debut in August 2010. The project consists of five blocks – three 22-storeys and two 19-storeys – and two commercial units on a 99-year leasehold site spanning 400,500 square feet. The 916 units range in size from two- to five-bedrooms, ranging from 700 square feet to 1,841 square feet. Prices start from over $1.5 million for a two-bedroom unit, over $2.1 million for a 915 square foot three-bedroom, $3.1 million for a 1,335 square foot four-bedroom, and $3.7 million for a 1,550 square foot five-bedroom.
According to PropNex’s Gafoor, Chuan Park is located in an affluent private residential area, surrounded by the Serangoon Gardens, Li Hwan, and Tai Hwan landed housing estates. Although it is classified as being in the Outside Central Region (OCR), it is close to the boundary of the Rest of Central Region (RCR). Ken Low, managing partner of SRI, points out that it is close to “million-dollar HDB estates”, including Serangoon, Toa Payoh, Ang Mo Kio, Bishan, and the upcoming Bidadari Estate.
ERA’s Chu estimates 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, 233 HDB flats were sold for over $1 million in the first 10 months of the year in the nearby HDB estates of Ang Mo Kio, Bishan, Toa Payoh, and Serangoon. “These HDB owners are in a good financial position to upgrade to private residential properties should they wish to,” adds Chu.
Chuan Park is next to the Lorong Chuan MRT Station and is surrounded by the landed housing estates of Serangoon Gardens, Tai Hwan, and Li Hwan (Source: EdgeProp Landlens)
According to Huttons’ Yip, Chuan Park’s launch was among the most highly anticipated this year. The preview period from Deepavali Day (October 31) to November 7 attracted over 20,000 visitors, with more than 2,800 checks collected from interested buyers ahead of the sales launch on November 10. Originally scheduled for November 16, the launch was brought forward to November 10. “By bringing forward the launch of Chuan Park, we were able to spread the demand from investors and homebuyers across various newly launched developments,” says SRI’s Low.
Three other projects are scheduled to launch on November 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 robust sales at Chuan Park will carry over to the upcoming launches next weekend, building on the existing interest in these projects. “We are also seeing buyers gravitate towards other ongoing new launches,” he adds. “This momentum provides a welcome boost to an otherwise subdued 2024 market.”
The recent interest rate cuts by the US Federal Reserve—a 50-basis point reduction on September 18 and a 25-basis point cut on November 8, with further cuts anticipated next year—have boosted confidence and demand in the real estate market. “There will be increased affordability as banks lower their stress test rates,” notes SRI’s Low. “Additionally, homebuyers will benefit from savings on monthly mortgage payments due to the reduced interest rates.”
To summarize, the decision to invest in a condo in Singapore provides various benefits, such as high demand, potential for increased value, and attractive rental returns. Nevertheless, it is crucial to carefully evaluate elements like location, financing options, government regulations, and market trends. By conducting thorough research and seeking expert guidance, investors can make well-informed choices and maximize their profits in Singapore’s dynamic real estate industry. Whether you are a local investor seeking to diversify your portfolio or a foreign buyer looking for a stable and lucrative investment, Singapore’s condos offer a compelling opportunity.
The improved market sentiment has encouraged even those homebuyers who were hesitant during the first nine months of the year to return, says PropNex’s Gafoor. 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.”