Review of The Chuan Park
Get ready, because the long-awaited debut of The Chuan Park is finally happening! Mark your calendars for a preview this October, with sales bookings opening up in November. In this post, we’ll dive into the perks and pitfalls of this brand-new launch. Let’s explore!
For additional details, like the price list and the latest updates on unit availability, head over to:
👉🏻 Launch Info
What is the launch price?
The launch price is not yet known (as of Sep 2024), but we do know how much the developer have paid for the enbloc plot, hence the estimated breakeven PSF is $2,229
How much profit margin would Kingsford sell at? Their past 2 mega projects are both sold with 12% profit margin:
- Normaton Park breakeven PSF is $1,516, but they sold starting from $1,700 in 2021
- Kingsford Waterby breakeven PSF is $982, but they sold starting from $1,100 in 2015.
To sell The Chuan Park at a 12% profit, it will be $2,496.
Nearby condos
Let’s compare the D19 condos, with 4 of them around The Chuan Park.
| Condo | TOP | Lease | 3BR PSF (1y) | Rental Yield (1y) |
|---|---|---|---|---|
| The Scala | 2013 | 99y | $1,661 | 3.83% |
| Goldenhill Park | 2004 | FH | $2,105 | 2.32% |
| The Springbloom | 1999 | 99y | $1,558 | 2.7% |
| Chiltern Park | 1995 | 99y | $1,439 | 3.1% |
Using the 3-bedroom PSF for the past 1 year, we can interpolate the PSF for The Chuan Park which is expected to TOP in 2028. The interpolation takes into the biggest factors: TOP and lease tenure (accounted for Goldenhill Park’s Freehold premium).
With that, our interpolated PSF is $2,506 PSF.
That means if this new launch is selling at $2,506, it is fair compared to nearby resale eg. The Scala selling at $1,661 PSF but 18 years older.
Not-so-good developer
A concern for The Chuan Park will be the developers, which are Kingsford and MCC Land. Both of which don’t have the best reputation when it comes to Singapore condo projects.
- Kingsford’s Normaton Park was launched with no-sale license, because of Kingsford Waterbay complaints (defects!) and Kingsford Hillview Peak
- MCC Land’s Sceneca Residence similarly was launched with no-sale license
In our post on how to identify good or bad developer, we shared on using BCA’s CONQUAS scoring. Here is how they performed, with 1 being very good, and 5 being very bad:
Normaton Park is still under assessment, and it performed well with annualized profit up to 8%. So, perhaps the quality got better?
On the other hand, Kingsford Waterby (another mega project in D19) and Tres Residences are both very bad with CONQUAS score of 5. And Kingsford Waterbay did not perform well with only 2% annualized profit.
To conclude, their track record isn’t the best. It won’t be a good buy if the launch price is too high.
What’s good?
It might go without saying, but the location is fantastic.
- Lorong Chuan MRT at doorstep, connecting you to all other MRT lines easily
- Good primary Schools within 1km: Kuo Chuan Presbyterian, Yangzheng, CHIJ
- Nanyang JC is a Top 4
- OCR, but at the fringe of RCR
- Mega project with 916 units
Conclusion
Price is always key.
- Developer estimated breakeven PSF is $2,229
- With 12% profit margin will be $2,496
- Lentor region and Kovan Jewel starts from $2,000
- Grand Dunman starts from $2,500
- Pinetree Hill (RCR, Ulu Pandan, TOP 2027) starts from $2,313
It will be great for The Chuan Park to start from $2,400 PSF 😉
An estimated price for the different bedroom types.
| Type | sqft | $2,400 PSF | $2,500 PSF | $2,600 PSF |
|---|---|---|---|---|
| B2 | 732 | $1,756,668 | $1,829,863 | $1,903,058 |
| C1 | 915 | $2,195,836 | $2,287,329 | $2,378,822 |
| C2 | 1023 | $2,454,169 | $2,556,426 | $2,658,683 |
| C3 | 1206 | $2,893,336 | $3,013,892 | $3,134,448 |
| D1 | 1335 | $3,203,337 | $3,336,809 | $3,470,281 |
Feel free to reach out to us for more details, more analysis!
