Chuan Park is a new launch condominium located along Serangoon Avenue 3, jointly developed by Kingsford and MCC. It is the first new launch condo in the area in more than 11 years, with many condos in that area being more than 20 years old.
Kingsford is known for properties such as Normanton Park and Kingsford-named properties such as Kingsford Waterbay and Kingsford Hillview Peak.
Kingsford sold 696 or 76% of Chuan Park, a 916 unit development, during the launch at an average price of over $2,579 psf. This makes Chuan Park one of the fastest-selling development ever.
In Singapore, if a good-sized development sells more than 50% of its units on launch day, it usually means that on balance, this development is well-sought after, particularly for large developments.
Price of development
| Unit Type | Unit Size (sqft) | Number of units | Starting price ($’m) |
| 2 Bedroom | 700-829 sqft | 104 | $1.5 m |
| 2 Bedroom + Study | 732-883 sqft | 299 | $1.8 m |
| 3 Bedroom | 915-1,507 sqft | 431 | $2.1 m |
| 4 Bedroom | 1,335-1,679 sqft | 60 | $3.1 m |
| 5 Bedroom | 1,550-1,841 sqft | 22 | $3.7 m |
The 916 units range from two to five bedrooms, with sizes from 700 sqft to 1,841 sqft. Prices start from $1.5m, $2.1m, $3.1m and $3.7m, respectively, for two- to five- bedroom units.
With smaller-three bedroom units starting from $2.1m, it’s clear that the developer aims to appeal to a broad market. While we would not go into the detailed data here, we also noted that almost every condo in the area has delivered a ROI of at least 4% over the last 5 years, which attests to the capital gain opportunity at hand.
Investment and price appreciation potential
We look at several factors that determine the investment potential.
Location
Chuan Park is located in District 19, next to Lorong Chuan MRT station. The development is near the Australian International School which has more than 2000 international students, and is within 1KM of local schools like St Gabriel’s Primary School, Zhonghua Primary School, CHIJ Our Lady of Good Counsel, Zhong Hua Secondary School and Nanyang Junior College. It is also less than 2KM away from Kuo Chuan Presbyterian Primary School. Additionally, Chuan Park is close to potential upgraders in nearby estates such as Toa Payoh, Bishan, Ang Mo Kio and Serangoon.
This prime location makes it attractive to expatriates who are looking to rent as well as locals who are looking to live near reputable local schools.
Transport and amenities
Chuan Park being located next to a train station means that potential buyers would look towards using the train to get around. Chuan Park is on the Circle line and is one train stop away from two major interchanges, the Serangoon MRT station which connects to the North East Line and the Bishan MRT station which connects to the North South Line. It’s also only four stops away from both ends of the Downtown line.
The development itself is also very near both ground level exits of the Lorong Chuan MRT station.
Being near mature estates like Toa Payoh, Bishan, Ang Mo Kio and Serangoon ensures that there is no lack of amenities whether for local or foreigners.
Chuan Park is also near the Central Expressway (CTE) which allows residents to reach Orchard and Raffles Place within 20 mins by car.
Size of development and size of units
Boutique developments have generally underperformed larger developments. A development typically needs to be of a certain size to offer all the facilities expected of a condominium. A 916 unit sized development is somewhat considered a mega development and tends to provide more family-friendly facilities as well as larger-scale facilities such as larger function rooms. Maintenance fees may also be somewhat lower due to economies of scale.
Chuan Park not only features a 50-meter lap pool but also has an adjacent oasis pool that is even larger than the lap pool.
Data indicates that 2 and 3 bedroom units tend to achieve higher annualised gain. This could be due to demand factors such as the current family size and the price point among potential upgraders.
Due to the price point, investors tend to choose between 1- bedroom or 2- bedroom units. In this case, the developer has chosen not to build any 1-bedroom units. It is likely because a 2- bedroom units provides for more exit opportunities, as it is attractive to a wider range of buyers.
Rental market
The rental catchment market for Chuan Park includes not only expatriates families who want to place their children in the international school but also younger expatriates and even young locals who tend to not drive and want to live close to the city. Even local families who may be looking for a rental unit for various reasons may also find the location appealing.
Reputation of Developer
Unfortunately, this is where the issue begins. Kingsford and MCC Land do not have as strong a reputation as some of the local developers like City Development (SGX:C09) because of past construction quality issues. Below we have a snapshot of the track record of these developers based on the CONQUAS (Construction Quality Assessment System) score issued by the Building and Construction Authority.
Kingsford was hit with a no-sale license for Normanton Park due to its poor construction quality of Kingsford Waterbay. MCC Land was also hit by a no-sale license for its Sceneca Residence Condo. A no-sale license is a permit that allows developers to start construction on a project but prohibits the sale of units without prior approval. This is to protect home buyers’ interest.
Both Kingsford and MCC Land were able to rectify the issues to the standards required by the authorities and were subsequently able to continue selling their new launches.
We cannot comment if the issuance of no-sale licenses affected sentiments about the two developers but both Normanton Park and Sceneca Land sold well. Sceptics would attribute this positive market response to competitive pricing.
Should you buy?
According to real estate agents, the best time to buy property in Singapore was yesterday. If you’ve already bought one, you should start strategising for a second property.
In Singapore, location is the most important factor, and the strong performance on launch date makes it clear that Chuan Park has not just location but many other positive factors.
In Singapore, buying a private property is not just a substantial investment but also an investment that has to be carefully thought through, especially since Singaporeans can only buy one property without incurring substantial stamp duties. In our opinion, any property that is substantially oversubscribed and sells more than 70% on Day One is a property worth looking at, as people are clearly putting their money where their mouth is.
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