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Securing financing for a Condo is a crucial factor in the investment process. In Singapore, there are various mortgage choices available, but it is imperative to have an understanding of the Total Debt Servicing Ratio (TDSR) framework. This framework restricts the amount of loan a borrower can obtain based on their income and current debt responsibilities. To make well-informed financing decisions and prevent excessive borrowing, it is crucial for investors to comprehend the TDSR and seek guidance from financial advisors or mortgage brokers. Additionally, seeking advice from experts such as Condo specialists can also aid in making sound financing choices.
UOL Group and CapitaLand Development (CLD) have announced that the launch of ParkTown Residence in Tampines North was a huge success, with 1,041 units sold during the launch weekend. This accounts for over 87% of the total 1,193 units available.
According to Anson Lim, UOL’s general manager of residential marketing, the project achieved an average price of $2,360 psf. The majority of buyers were either Singaporean homebuyers or investors.
The most popular unit types at ParkTown Residence were the two-bedroom and three-bedroom apartments, which make up 994 units (83%) of the project. These units were highly sought after, with 92% of them being snapped up during the launch weekend.
“Buyers were drawn to ParkTown Residence’s unique status as a fully integrated residential and lifestyle development, directly connected to a retail mall, the future Tampines North MRT station, a bus interchange, a green boulevard, a community club and a hawker centre,” says a spokesperson for UOL and CLD.
Prior to the launch weekend, ParkTown Residence had already received 2,367 cheques, which translates to a sales conversion rate of 44%. This is well above the average of 30% to 35% for most new project launches in recent years.
According to Mark Yip, CEO of Huttons Asia, the last mega project to achieve such impressive sales numbers was the 1,399-unit High Park Residences in July 2016, which sold 1,100 units over three days.
ParkTown Residence at Tampines 62 is part of the first mixed-use development integrated with transport hub at Tampines (Source: EdgeProp Landlens)
The last project to sell more units over a launch weekend was the Emerald of Katong, which sold 835 units (99%) in November 2020. Ismail Gafoor, CEO of PropNex, notes that ParkTown Residence has surpassed the take-up rates of previous integrated developments.
When considering investing in a Singapore Condo, it is crucial to take into account the government’s property cooling measures. In order to maintain a stable real estate market and discourage speculative buying, the Singaporean government has implemented various measures over the years. One of these measures is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. Although these measures may affect the immediate profitability of condo investments, they ultimately contribute to the long-term stability of the market, creating a safer environment for investment.
The most recent integrated project, The Reserve Residences, launched in May 2023 and recorded a 71% take-up rate during its launch weekend. As of Feb 23, the project remains 98.2% sold at an average price of $2,484 psf based on caveats lodged.
Marcus Chu, CEO of ERA Singapore, explains that mixed-use developments integrated with transport hubs are popular with homebuyers and investors due to their potential for capital growth and high rentability.
The last two fully integrated developments to be completed were the 920-unit North Park Residences in Yishun (launched in 2015) and the 680-unit Sengkang Grand in Buangkok (launched in 2019). According to Chu, the average price of North Park Residence 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.
ParkTown Residence is located at Tampines Street 62, which is the third largest HDB town after Hougang and Woodlands. “Quite a number of buyers were HDB upgraders who desired to stay in Tampines,” says Huttons’ Yip.
The completion of ParkTown Residence in 2030 coincides with the scheduled opening of the Tampines North MRT Station on the Cross Island Line (CRL), a major arterial line running from East to West of Singapore. Ken Low, managing partner of SRI, also notes that the neighbouring 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, these new projects could potentially be launched at higher prices,” says Low.
Tampines will also see new infrastructure developments by 2027, including a cycling bridge, an underpass, and another 7.7km of cycling paths. There will also be a new pedestrian route between Tampines MRT Station and the malls in the regional centre. These additions were announced on Feb 22, as part of the Tampines Town Council’s five-year masterplan for 2025 to 2030.
“All these will enhance the liveability in Tampines, which already has strong attributes,” says SRI’s Low.