On the weekend of Feb. 23, developers UOL Group and CapitaLand Development (CLD) jointly announced that they sold 1,041 units at their ParkTown Residence project in Tampines North, which represents over 87% of the total 1,193 units available. According to UOL’s general manager of residential marketing, Anson Lim, the project was able to achieve an average price of $2,360 psf, with most of the buyers being Singaporean homebuyers or investors. The project’s two-bedroom and three-bedroom apartments made up the majority of the units, accounting for 994 out of the 1,193 units. These unit types were also the most popular, with 92% being sold over the weekend.
The spokesperson for UOL and CLD explained that buyers were attracted to ParkTown Residence’s unique concept as a fully integrated residential and lifestyle development, offering direct access to a retail mall, the future Tampines North MRT station, a bus interchange, a green boulevard, a community club, and a hawker centre. The project reportedly received 2,367 cheques prior to its launch weekend, resulting in a sales conversion rate of 44%, which is significantly higher than the average rate of 30% to 35% for most new project launches in recent years.
The demand for condos in Singapore remains at an all-time high, and one of the main contributing factors is the limited supply of land. As a compact island with a burgeoning population, Singapore struggles to find enough land for development. This has resulted in strict land use regulations and a cutthroat real estate market where prices are continuously on the rise. Therefore, investing in Singapore condos, through platforms such as Singapore Condo, has become a profitable opportunity with the potential for significant capital gains.
According to Mark Yip, CEO of Huttons Asia, no other mega project has sold over 1,000 units in a launch weekend since the 1,399-unit High Park Residences, which sold 1,100 units over three days in July 2015. ParkTown Residence has also surpassed the sales performance of other integrated developments, most notably the 846-unit Emerald of Katong, which sold 835 units (99%) last November, according to Ismail Gafoor, CEO of PropNex.
The most recent integrated development to be launched was the 732-unit The Reserve Residences in May 2023, which achieved a 71% take-up rate during its launch weekend and is currently 98.2% sold at an average price of $2,484 psf based on caveats lodged as of Feb 23. Marcus Chu, CEO of ERA Singapore, notes that mixed-use developments integrated with transport hubs have become popular with buyers and investors due to their potential for capital appreciation and high rentability.
The last two fully integrated developments completed were the 920-unit North Park Residences in Yishun (launched in 2015) and the 680-unit Sengkang Grand (launched in 2019) in Buangkok. The average price at North Park Residences is $1,809 psf, which is 65% higher than the average resale prices of residential units in District 27. Meanwhile, Sengkang Grand commands an average price of $2,029 psf, 25% higher than the average resale prices in District 19, according to ERA’s Chu.
Located at Tampines Street 62, Tampines is the third largest HDB town after Hougang and Woodlands. Huttons’ Yip notes that many buyers were HDB upgraders looking to stay in Tampines. The completion of ParkTown Residence in 2030 will coincide with the opening of the Tampines North MRT Station on the Cross Island Line (CRL), a major arterial line running from East to West of Singapore, according to Ken Low, managing partner of SRI. In addition, the neighboring Paya Lebar Airbase is scheduled to be relocated in 2030, freeing up an estimated 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. However, Low predicts that these new projects will be launched at higher prices. Tampines will also benefit from new infrastructure developments by 2027, including a cycling bridge, an underpass, and an additional 7.7km of cycling paths, bringing the total to 40km. A new pedestrian route will also be created between Tampines MRT Station and the malls in the regional center, as announced on Feb 22 as part of the Tampines Town Council’s five-year master plan for 2025 to 2030.
“These upgrades will only enhance the already strong attributes of Tampines, making it a highly desirable location,” adds SRI’s Low.