The Edge Singapore, August 3, 2015

City & Country: DoneDeals: High Park Residences hits the right note with buyers
 

The launch of High Park Residences over the Hari Raya weekend of July 17 to 19 drew crowds from across Singapore. On the first day of balloting, about 4,000 people visited the show flat in Fernvale Road, where close to 600 units were snapped up. July 18 saw a crowd of over 2,000 visitors, and sale of units by balloting ­ continued until 2pm that day. By Sunday evening, 1,100 units had been sold, at an average price of $970 psf.

As at July 29, over 1,170 units at High Park Resi­ dences have been taken up. That translates into 84% of the 1,399 units in the development. The 99-year leasehold condo is a joint development by Chip Eng Seng Corp, with a 60% stake, as well as Heeton Holdings and KSH ­ Holdings, each holding 20%. " We expected sales to be strong because we have a great product, good location and attractive ­ pricing," says

C B 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 on the first three days, with over 1,000 caveats lodged for High Park Residences, that the Done Deals table for the week of July 12 to 19 was not able to reflect all the transactions in the project. What is shown is, ­ therefore, only a selection of transactions at High Park Residences.

Against a backdrop of sluggish sales weighed down by oversupply concerns, property cooling measures and tightened borrowing limits owing to the total debt servicing ratio, the sheer number of units sold over the three days was " spectacu­ lar" , ­ 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 - at an average price of $952 psf - were scooped up on the first day of the VIP preview alone. The project by Hong Leong Holdings was sold out within the first three weeks of its launch in October 2013.

Another was The Hillford by World Class Land and Fragrance Group, located in 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 in January 2014, at an average price of $1,100 psf.

High Park Residences did have a positive spill­ over effect on other projects in Sengkang. The show flat of two executive condo (EC) projects, namely the 651-unit Bellewaters by Qingjian Realty and SingHaiYi Group' s 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 proxi­ mity of the three show flats. However, there are restrictions on buying ECs. For one, it is 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 unit for a mini­ mum of five years before re-selling. At the end of the fifth year, the EC owner can only sell his unit to a Singaporean or permanent resident. 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 projects sold after December 2013. Therefore, HDB upgraders will now be subject 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 not have to pay the resale levy.

Owing to the HDB restrictions, EC prices are also priced about 20% lower than that of private ­ condos in the same area. However, EC buyers are entitled to a CPF housing grant, like most first-time HDB 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 does not have any restrictions, the project appeals to both investors and owner-occupiers. The strong sales at the private condo have also provided an ­ uplift to market sentiment, say property agents. The project was jointly marketed by Huttons Asia, ­ OrangeTee and PropNex.