Investing in a Singapore condo offers a multitude of benefits, one of the most notable being the potential for capital appreciation. Boasting a strategic location as a global business hub and a robust economy, Singapore maintains a high demand for real estate. As a result, property prices have consistently risen over the years, particularly in prime locations. For investors who enter the market at the right time and hold onto their condos for the long term, the potential for significant capital gains is promising.
UOL and CapitaLand Development have recently announced the successful launch of ParkTown Residence in Tampines North. During the launch weekend, 1,041 units were sold, accounting for more than 87% of the total 1,193 units. This translates to an average price of $2,360 psf, according to Anson Lim, UOL’s general manager of residential marketing. The majority of buyers were either Singaporean homebuyers or investors.
The project consists of two-bedroom and three-bedroom units, making up 994 units (83%) of the entire development. These unit types were the most popular, with 92% being sold over the launch weekend. The high demand for ParkTown Residence can be attributed to its unique status as a fully integrated residential and lifestyle development, directly connected to a retail mall, the future Tampines North MRT station, a bus interchange, a green boulevard, a community club, and a hawker centre. A spokesperson for UOL and CLD stated that before the launch, 2,367 cheques were collected, resulting in a sales conversion rate of 44%. This is significantly higher than the average of 30% to 35% for most new project launches.
According to Mark Yip, CEO of Huttons Asia, no mega project has sold more than 1,000 units in its launch weekend since the launch of High Park Residences in July 2015, which sold 1,100 units over three days. ParkTown Residence, however, has surpassed this record since the 846-unit Emerald of Katong, which achieved a 99% take-up rate in November last year, selling 835 units.
The success of ParkTown Residence has also exceeded that of previous integrated developments, according to Ismail Gafoor, CEO of PropNex. The most recent integrated project launch was The Reserve Residences, with 732 units launched in May 2023 and achieving a 71% take-up rate during its launch weekend. As of Feb 23, the project has sold 98.2% of its units at an average price of $2,484 psf, based on caveats lodged. Marcus Chu, CEO of ERA Singapore, also stated that mixed-use developments integrated with transport hubs have been popular among homebuyers and investors due to their potential for capital upside and high rentability.
The last two fully integrated developments to be completed were North Park Residences in Yishun (launched in 2015) and Sengkang Grand at Buangkok (launched in 2019), with 920 units and 680 units, respectively. The average price of North Park Residences is $1,809 psf, which is 65% higher than the average resale prices in District 27. Meanwhile, Sengkang Grand commands an average price of $2,029 psf, which is 25% higher than the average resale prices in District 19.
Located at Tampines Street 62, ParkTown Residence is part of the first mixed-use development integrated with a transport hub in Tampines. According to Huttons’ Yip, many of the buyers were HDB upgraders who wanted to stay in Tampines. Its completion in 2030 is aligned with the scheduled opening of the Tampines North MRT Station on the Cross Island Line (CRL), which is a major arterial line running from East to West of Singapore, says Ken Low, managing partner of SRI. Additionally, the relocation of the neighbouring Paya Lebar Airbase in 2030 is expected to free up 800ha of land for future developments.
Under the URA Master Plan, three more government land sales (GLS) sites will be linked to the upcoming Tampines North MRT Station. With these new projects potentially being launched at higher prices, Low believes that Tampines will benefit from these developments. In 2027, new infrastructure developments such as a cycling bridge, an underpass, and 7.7km of cycling paths will be completed, bringing the total to 40km. There will also be a new pedestrian route between Tampines MRT Station and the malls in the regional centre, which was announced on Feb 22 as part of the Tampines Town Council’s five-year masterplan for 2025 to 2030.
“All these will enhance the liveability in Tampines, which already has strong attributes,” says SRI’s Low.