High Park Residences hits the right note with buyers

The launch of High Park Residences over the Hari Raya weekend on July 17-19 drew crowds from across Singapore. On the first day of balloting (July 17), about 4,000 people visited the showflat at Fernvale Road where close to 600 units were snapped up. The second day saw a crowd of over 2,000 visitors, and balloting of units had continued until 2pm that day. By Sunday evening, 1,100 units were sold at an average price of $970 psf.

As of July 29, over 1,170 units (about 84%) at High Park Residences which has a total of 1,399 units have been sold. The 99-year leasehold condo is joint development by Chip Eng Seng Corp with a 60% stake as well as Heeton Holdings and KSH Holdings who each hold 20%.“We expected sales to be strong because we have a great product, good location and attractive pricing,” says CB Chng, executive director of CEL Development, the property development arm of Chip Eng Seng. “But we didn’t expect such an overwhelming response.”

There were so many transactions for the first three days, and over 1,000 caveats lodged for High Park Residences, that Done Deals table for the week of July 12-19 was not able to show all the transactions in the project. What is shown is, therefore a selection of the transactions at High Park Residences.

Against a backdrop of sluggish sales weighed down by oversupply concerns, property cooling measures and tightened borrowing limits due to the total debt servicing ratio (TDSR), the sheer number of units sold over the three days was “spectacular”, remarks a property agent who declined to be named. It even surpassed the sales achieved at other projects that were notable for being sold out quickly in recent years.

One recent example was The Inflora, where 90% of the 396 units were scooped up on the first day of VIP preview alone at an average price of $952 psf. The project by Hong Leong Holdings was sold out within the first three weeks of its launch back in October 2013.

Another was The Hillford by World Class Land and Fragrance Group located at Jalan Jurong Kechil in Upper Bukit Timah. It was the first 60-year leasehold private condo of its kind to be launched in Singapore, and was positioned as a retirement resort. The 281-unit project was sold out within five hours on the first day of its launch at an average price of $1,100 psf.

High Park Residences did have a positive spillover effect on other projects in Sengkang. The showflat of two executive condo (EC) projects, namely the 651-unit Bellewaters by Qingjian Realty and 517-unit The Vales are located directly opposite High Park Residences’ sales gallery.

Marketing agents of both ECs reported seeing more walk-in traffic and potential sales the weekend High Park Residences was launched given the proximity of the three showflats. However, there are restrictions in buying ECs. For one, it’s not open to foreigners and there is a household income ceiling of $12,000 a month. EC buyers are also subjected to the HDB rule which requires buyers to stay in their units for a minimum occupation period of five years before re-selling. At the end of the fifth year, the EC buyer can only sell to Singaporeans or permanent residents. It is only after the 10th year that the EC can be traded like any other 99-year leasehold condo and is open to foreign buyers. EC buyers who are HDB second-timers will have to pay a resale levy for EC projects that were sold after December 2013. Therefore, HDB upgraders will now be subjected to a resale levy when they sell their HDB flat to buy a unit at The Vales. However, those buying Bellewaters where the site was purchased by the developer before December 2013, will therefore not be subjected to the resale levy.

Owing to the HDB restrictions, EC prices are also priced about 20% lower than private condos in the same area. However, EC buyers are also entitled to a CPF housing grant, like most HDB first-time buyers. “There is a trade-off when it comes to buying ECs,” says a property agent. “But it’s a more affordable way for those who want to make the transition from public to private housing.”

As High Park Residences is a private condo, and it doesn’t have any restrictions, the project appeals to both investors and owner occupiers. The strong sales at the private condo has also provided an uplift to market sentiment, say property agents. The project was jointly marketed by Huttons Asia, OrangeTee and PropNex.

This article appeared in the City & Country of Issue 688 (Aug 3) of The Edge Singapore.