The 276-unit Parc Komo, located along Upper Changi Road North, achieved sales of 70 units at the close of its launch weekend as at 6pm on Sunday, May 26.
The crowd at Parc Komo on Saturday, May 25, the first day of launch (Credit: CEL Development)
This translates to a sales rate of over 25%, which Ismail Gafoor, CEO of PropNex, says is “very credible”. He attributes it to two main reasons: The developer pricing the project sensitively at an average of $1,450 psf; and the freehold tenure of the development. “There are very few decent land plots with more than 200 units available, quality lifestyle facilities similar to Parc Komo’s, and of freehold tenure,” adds Ismail.
CEL Development, the property development arm of listed group, Chip Eng Seng Corp, is the developer of the mixed-use development which includes 28 retail units. These units will be managed by the developer. Amenities are likely to include F&B outlets, a childcare centre or pre-school, a clinic and even a supermarket. “There are people who are drawn to such mixed-use developments because of the convenience that they provide,” says Doris Ong, COO of ERA Realty Network.
The developer spent $4 million on the sales gallery and showflats. The investment seems to have paid off. “We have a good product and the buyers see value and potential in it,” says Joanne Goh, CEL Development general manager (marketing). “We have received feedback that our project feels like a $2,000 psf property.”
Crowd at Parc Komo sales gallery on launch weekend (Credit: CEL Development)
Ken Low, managing partner of SRI, agrees. “At an average of $1,450 psf, many investors see room for capital appreciation in the future,” he says. “Homeowners fell in love with the serenity and retreat-like surroundings of Parc Komo, something that is rarely found in the urban areas.”
Although the one- to three-bedroom units were the most sought-after, there was also buying interest in the four- and five-bedroom units, notes CEL Development’s Goh.
The take-up rate at Parc Komo is all the more impressive given that the project previewed only the week before, on May 18, adds PropNex’s Ismail. In the eastern region, there are also a number of competing new projects, for instance, the 2,203-unit Treasure at Tampines; the 428-unit The Jovell at Flora Drive; the 861-unit The Tapestry located off Tampines Avenue 10; and the boutique 49-unit development Casa Al Mare at Jalan Loyang Besar in Pasir Ris.
This year, several developers have launched their projects within seven to 10 days of opening their sales gallery for preview. This is to maintain interest and sales momentum, says Ismail. “With more new launches, the number of cheques collected [as expressions of interest] has been halved,” he adds. “Sensing that buyers have plenty of choices today, and a longer preview period doesn’t necessarily lead to a significant increase in number of cheques collected, developers have shortened their preview period to seven to 10 days.”