696 of Chuan Park's 916 units were sold on the first weekend, with prices averaging S$2,579 psf.

The robust performance is attributed to a large population of potential purchasers seeking to enhance and the absence of new projects in the area.

November 11, 2024

CONDOsingapore.com



At an average price of S$2,579 per square foot (psf), approximately 76% of the 916 units at Chuan Park were sold during their launch weekend.

A spokesperson from Kingsford Group, the developer of the 99-year tenure development, indicated in a morning update on Monday (Nov 11) that 696 residential units had been sold.

Chuan Park is a redevelopment of the former condominium of the same name, which Kingsford Group acquired en bloc for S$890 million in May of last year.

According to the spokesperson, Singaporeans comprise approximately 93% of the purchasers, while the remaining 7% are permanent residents and expatriates.

Ismail Gafoor, the chief executive of PropNex, observed that Chuan Park is the first project in recent history to have transacted nearly 700 units at launch. "It is the highest launch sales figure since High Park Residences sold over 1,000 units during its launch weekend in July 2015," he stated.

The robust performance is attributed to a large population of potential purchasers seeking to enhance and a paucity of new projects in the area.

Marcus Chu, the chief executive of ERA Singapore, stated, "There is substantial excitement and pent-up demand, as this is the first new condominium launch in this established and popular residential enclave in 14 years."

He observed that the development, which is situated along Lorong Chuan, was able to "attract and draw on the huge buyer base" from the established residential areas in the vicinity.

He observed that the region contains approximately 126,000 Housing and Development Board (HDB) apartments and 54,000 private residential units.

Another contributing factor was the substantial volume of S$1 million resale transactions that occurred this year.

In the nearby HDB estates of Ang Mo Kio, Bishan, Toa Payoh, and Serangoon, approximately 233 units of HDB flats were transacted for more than S$1 million during the first 10 months of this year, per Chu.

"These HDB owners are in a favourable financial position to upgrade to private residential properties if they so choose," he continued.

Three 22-story tower blocks, two 19-story tower blocks, and two commercial units comprise the redeveloped Chuan Park.

The starting prices of the smallest units, which are two-bedroom units at 700 square feet (sq ft), were above S$1.5 million. The largest units, which are five bedrooms at 1,550 sq ft, had starting prices above S$3.7 million.

PropNex's Gafoor observed that approximately 92% of the units transacted were two- and three-bedroom units, while the remaining 8% were four- and five-bedroom units.

Chu of ERA observed that the two- and three-bedroom units were in high demand among purchasers in their 30s and 40s who were upgrading from HDB apartments or the older condominiums in the area. "Buyers who are right-sizing from landed properties are older and typically opt for the four or five-bedroom types," he continued.

Mark Yip, the chief executive of Huttons Asia, reported that approximately 70% of the two-bedroom and three-bedroom units were sold, while over 60% of the four-bedroom units were sold.

"The preview of the highly anticipated project in Lorong Chuan, which has been in the works for 14 years, is expected to have attracted over 20,000 visitors," stated Yip. "This may represent the highest number of visitors in recent years." More than 2,800 checks were collected from prospective purchasers.

According to the spokesperson for Kingsford Group, the temporary occupation permit for the development is anticipated to be obtained in December 2027.

Gafoor observed that the sales performance of Union Square Residences and Chuan Park over the weekend "established the foundation for a robust conclusion to what had been a relatively subdued primary market this year."

"The market has been infused with a sense of urgency as a result of the gradual improvement in buying sentiment since July 2024. Additionally, the recent rate cuts by the US Federal Reserve and the potential for further easing in interest rates have instilled some confidence in buyers," he continued.