During the launch weekend, 696 of Chuan Park's 916 units sold for an average of S$2,5
During the launch weekend, 696 of Chuan Park's 916 units sold for an average of S$2,579 per square foot
A large pool of prospective buyers wishing to upgrade and the absence of new projects in the area are two factors contributing to the good performance.
November 11, 2024
CONDOsingapore.com
During the launch weekend, approximately 76% of the 916 units at Chuan Park were sold, with an average price of S$2,579 per square foot (psf).
In an update released Monday morning (November 11), a representative for developer Kingsford Group stated that 696 residential units in the 99-year leasehold development had been sold.
The Chuan Park complex is a redevelopment of the same-named condo that Kingsford Group bought in bulk for S$890 million in May of last year.
According to the spokesperson, approximately 93% of the purchasers are Singaporeans, with the remaining 7% being foreigners and permanent residents.
Chuan Park is the first project in recent memory to have sold close to 700 units at launch, according to PropNex CEO Ismail Gafoor. "Since High Park Residences sold over 1,000 units during its launch weekend in July 2015, this is the highest launch sales figure," he said.
The strong performance can be attributed to a number of factors, including a large pool of prospective buyers seeking to upgrade and a dearth of new projects in the area.
Marcus Chu, the CEO of ERA Singapore, stated: "There is a lot of excitement and pent-up demand because this is the first new condominium launch in this well-known and established residential enclave after 14 years."
In the established residential areas nearby, the development along Lorong Chuan was able to "attract and draw on the huge buyer base," he said.
He pointed out that there are about 54,000 private residential units and 126,000 Housing and Development Board (HDB) apartments in the area.
The high volume of S$1 million resale transactions this year was another factor.
"During the first ten months of this year, approximately 233 HDB apartment units in the neighbouring HDB estates of Ang Mo Kio, Bishan, Toa Payoh, and Serangoon were sold for more than S$1 million," Chu stated.
If they so choose, he continued, "these HDB owners are in a good financial position to upgrade to private residential properties."
Three 22-story tower blocks, two 19-story tower blocks, and two commercial units make up the redeveloped Chuan Park.
The smallest available units, 700 square feet (sq ft) and with two bedrooms, started at more than S$1.5 million, while the largest units, 1,550 sq ft and with five bedrooms, started at more than S$3.7 million.
According to PropNex's Gafoor, approximately 92% of the units sold had two or three bedrooms, with the remaining 8% having four or five bedrooms.
The majority of buyers in their 30s and 40s who were upgrading from HDB apartments or the older condominiums in the area were drawn to the two- and three-bedroom units, according to Chu of ERA. He continued by saying that older buyers who are right-sizing from landed properties usually choose four or five-bedroom homes.
Mark Yip, the CEO of Huttons Asia, reported that over 60% of the four-bedroom units were sold, while roughly 70% of the two-bedroom and three-bedroom units were sold.
"During its preview, the much-anticipated project in 14 years in Lorong Chuan is estimated to have drawn over 20,000 visitors," Yip said. "The number of visitors may be the highest in recent years." Over 2,800 checks from prospective purchasers were gathered.
According to the Kingsford Group spokesperson, the development is anticipated to receive its temporary occupation permit in December 2027.
Chuan Park and Union Square Residences' sales over the weekend "set the stage for a strong finish to what had been a relatively muted" primary market this year, according to Gafoor.
The recent rate cuts by the US Federal Reserve and the possibility of additional interest rate easing have also given buyers some confidence, he continued. "The gradual improvement in buying sentiment from July 2024 has injected a little more urgency in the market."
