Park Colonial leads new launch in Woodleigh

By Bong Xin Ying

/ EdgeProp |

June 29, 2018 7:30 AM SGT

This time last year, property developers had bid aggressively for two government land sites on opposite sides of the Woodleigh MRT station, off Upper Serangoon Road.

In June 2017, a joint venture (JV) between Singapore Press Holdings and Kajima Development — the property development arm of Singapore-based Japanese construction group Kajima Overseas Asia — paid $1.13 billion, or $1,181 psf per plot ratio (ppr), for a mixed residential and commercial development site, which will be developed into the 680-unit Woodleigh Residences and Woodleigh Mall, which is expected to have about 300,000 sq ft of retail space. Woodleigh Residences is expected to be launched in September, with an indicative price of $2,000 psf.

In July 2017, a consortium comprising CEL Development (the property investment and development arm of Singapore-listed Chip Eng Seng Corp), Heeton Holdings and KSH Holdings paid $700.7 million, or $1,100 psf ppr, for the residential development site across the road on Woodleigh Lane. Both are 99-year leasehold sites, purchased in government land tenders.

The 805-unit Park Colonial will be launched on June 30, ahead of Woodleigh Residences by the SPH-Kajima JV (Credit: Samuel Isaac Chua/The Edge Singapore)

Launching ahead of the competition

However, Chip Eng Seng and its JV partners have made sure that their new project will be launched ahead of “the project located opposite our site”, says Raymond Chia, Chip Eng Seng executive chairman and group CEO.

The preview of the 805-unit Park Colonial on Woodleigh Lane will be held on the weekend of June 30 and July 1. “The reason why I chose this site is that there hasn’t been a new launch in the area for some time,” says Chia.

The last launch of a private condominium in the Woodleigh area was nine years ago, when the 330- unit 8@Woodleigh was launched in June 2009 and fully sold within two weekends. The project was completed in 2012.

Chia: The reason why I chose this site is that there hasn’t been a new launch in the area for some time (Credit: Samuel Isaac Chua/The Edge Singapore)

“The competition is not as intense as at some of the other neighbourhoods, as Woodleigh is a new town,” says Chia. What is more, Park Colonial is located next to the Woodleigh MRT station. “It’s probably the first launch of a mass-market condo that’s so close to an MRT station this year,” Chia notes. In the future, residents will also be able to enjoy the benefit of the development’s proximity to Woodleigh Mall across the road.

Park Colonial’s initial average price is likely to be around $1,700 psf. The project is expected to be launched in phases. The main reason for that is that Woodleigh Residences is expected to be launched at prices north of $2,000 psf.

According to sources, this is likely to pull up prices in the area, thereby benefiting Park Colonial as well.

Park Colonial comprises six 14- to 15-storey blocks that occupy a 210,404 sq ft site (Credit: Samuel Isaac Chua/The Edge Singapore)

Sized to sell

To cater for a wide spectrum of buyers, units at Park Colonial will range from one- to five-bedroom apartments. About 21% of the units will be one-bedroom and one-bedroom-plusstudy units that range from 463 to 506 sq ft. Two-bedroom units will make up 41% of the units and range from 570 sq ft for a two-bedroom classic unit to 743 sq ft for a two-bedroom dual-key unit. Three-bedroom units of 915 to 1,066 sq ft will make up another 27% of the units. Four-bedroom units, including deluxe units of 1,184 to 1,410 sq ft, will make up 60 units (7.5%). Five-bedroom units of 1,712 sq ft that come with private lift access will total just 29 units in the development.

The living room of a two-bedroom unit at Park Colonial (Credit: Samuel Isaac Chua/The Edge Singapore)

Designed by ADDP Architects, Park Colonial comprises six 14- to 15-storey blocks that occupy a 210,404 sq ft site. According to the architect, the design was inspired by the black-and-white colonial homes nestled within Woodleigh Park. The project has more than 50 facilities, including the clubhouse, which is the centrepiece; a cantilevered, 50m lap pool; lawns; courtyards; nature trail; and children’s play area.

Five-bedroom units of 1,712 sq ft come with private lift access (Credit: Samuel Isaac Chua/The Edge Property)

This is not the first collaboration by Chip Eng Seng, Heeton and KSH Holdings, which have stakes of 60%, 20% and 20% in the JV respectively. The trio were also partners at the 1,390-unit High Park Residences two years ago. The project was 90% sold on the first weekend of its launch in July 2015, and fully sold within 12 months, which was a record for a development of such a size.

Meanwhile, CEL Development's 720-unit Grandeur Park - located next to the Tanah Merah MRT station - which was launched last year, is 97% sold to date. Average price of units sold at Grandeur Park has also increased from $1,372 psf when it was first launched to $1,532 psf, based on caveats lodged in the three months from April to June 2018.

Three-bedders make up 27% of the units at Park Colonial (Credit: Samuel Isaac Chua/The Edge Singapore)

What’s next?

In the pipeline is the Changi Garden site, which Chip Eng Seng purchased en bloc for $248.8 million last October. The price was 27% above the asking price of $196 million, which translates into $888 psf ppr. The existing site contains 60 apartments, 12 penthouses and 12 shops

The 200,095 sq ft, freehold site at the junction of Upper Changi Road North and Jalan Mariam can be redeveloped into a new low-rise condo project with 320 residential units and several retail shops, according to Chip Eng Seng. The project is likely to be launched next year. Given its location in the Changi area, the new project will have a resort theme, says Chia. “Once again, we chose this site because of the lack of competition.”

Chia believes homebuyer interest remains strong and that there are no signs of a slowdown just yet. “Buyers are spoilt for choice,” he says. “There’ve been plenty of en bloc deals transacted over the past 12 to 15 months. Many of these en bloc beneficiaries who are sitting on cash are probably looking for a new investment property. I strongly believe location will be very important in their decision-making.”