Kingsford Achieves 76 Sales Chuan Park 2024S Best Performing Weekend Launch
from EdgeProp Singapore.
Kingsford Group, a Chinese developer, successfully sold 696 units out of 916 at Chuan Park on Sunday, Nov 10, marking a 76% take-up rate. The average price of units sold was approximately $2,579 per square foot.
According to a spokesperson from Kingsford, the units sold consisted of two-bedroom, two-bedroom+study, and three-to-five-bedroom units. Singaporeans made up the majority of buyers, comprising 93% of the total number of homebuyers, while permanent residents and foreigners made up the remaining 7%.
Ismail Gafoor, CEO of PropNex, states that 92% of the transacted units were two- and three-bedroom units, while the remaining 8% were four- and five-bedroom units. The transacted prices for all units ranged from $1.6 million for two-bedroom units to $4.3 million for a five-bedroom unit. He also commented that the developer has priced the project fairly considering the high demand, especially from buyers within District 19.
Marcus Chu, CEO of ERA Singapore, explains that the two- and three-bedroom units were the most popular amongst buyers, as most of them 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 were downsizing from landed properties preferred the larger four- or five-bedroom units.
As a result, Chuan Park has emerged as the top-selling project of 2024 in terms of the number of units sold, surpassing Lentor Mansion’s 400 units (75%) sold in March. However, in terms of the percentage of units sold, Norwood Grand, which was launched in October, remains the highest at 84% or 292 out of 348 units.
According to Mark Yip, CEO of Huttons Asia, Chuan Park is not only the best-selling project of 2024 but also the fastest-selling since the 2013 launch of J Gateway, which sold all 738 units on its first day.
.
Nine bidders vied for the tender of Novo Place EC, with the joint developers ultimately securing the highly sought-after site for a whopping $348.5 million. This sets a new record for EC site land rates, surpassing the previous high of $662 per square foot per plot ratio (psf ppr) at Bukit Batok West Avenue 8 in March 2022. This equates to a land rate of $703 psf ppr. For more information about Novo Place, check out the Novo Place Showflat.
This success is yet 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, with all units sold within 18 months.
Kingsford acquired the 99-year leasehold, 400,500 sq ft Chuan Park site for $890 million in July 2022. The site, located next to Lorong Chuan MRT Station, marks the first private condominium launch in the area since the 468-unit The Scala’s debut in August 2010.
The project, consisting of five blocks – three 22-storey and two 19-storey blocks – also has two commercial units spread across the 400,500 sq ft site. The 916 units range from two- to five-bedrooms, with sizes ranging from 700 sq ft to 1,841 sq ft.
Prices for the units start 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 situated in an affluent private residential enclave, surrounded by the Serangoon Gardens, Li Hwan, and Tai Hwan landed housing estates, as mentioned by PropNex’s Gafoor.
Although classified within the Outside Central Region (OCR), Chuan Park is near the boundary of the Rest of Central Region (RCR). Ken Low, the managing partner of SRI, highlights that it is near “million-dollar HDB estates”, including Serangoon, Toa Payoh, Ang Mo Kio, Bishan, and the emerging 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,” Chu adds.
Chuan Park’s launch was among the most anticipated this year, according to Huttons’ Yip. The preview period from Deepavali Day (Oct 31) to Nov 7 attracted over 20,000 visitors, with more than 2,800 cheques collected from interested buyers ahead of the sales launch on Nov 10. Originally slated for Nov 16, the launch was brought forward to Nov 10. “Bringing forward Chuan Park’s launch has allowed investor and homebuyer demand to spread across various new developments,” says SRI’s Low.
Three other projects are also 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 believes that the strong sales momentum 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 says. “This momentum provides a welcome boost to an otherwise subdued 2024 market.”
The recent interest rate cuts by the US Federal Reserve—which saw a 50-basis point reduction on Sept 18 and another 25-basis point cut on Nov 8, with further cuts anticipated next year—have boosted confidence and demand in the real estate market. “There will be increased affordability for buyers 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.”
These improved market sentiments have also encouraged homebuyers who were previously hesitant to return, notes PropNex’s Gafoor. However, he does not expect all upcoming project launches to see similarly strong sales. “Apart from the development’s specific attributes, factors such as location, proximity to MRT stations, nearby new launches, and price sensitivity also play a crucial role in a project’s sales performance.”