Parc Central launches on 23 Jan 2021, selling almost 60% at launch!
Check out the Parc Central Balance Units here.
We've got new updates for Indicative Pricing for Launch!
For more details on the launch, registration, complete set of Floor Plans, Site Plan and to download the eBrochure, visit the Parc Central website for more timely updates.
Parc Central launch timeline is estimated as follows:
Call the Developer Hotline at 6100-8108 for more information.
The eBrochure, with artists' impressions, Site Plan, Unit Layout Chart and Floor Plans, can be downloaded at this link:
The year 2020 is one that will be forever remembered by the emergence of Covid-19 on the world, impacting economies and businesses.
Despite this, the interest for new property launches in Singapore has not waned, seeing how several projects has achieved stellar results right from its launch. Just to name a few, there was Parc Canberra EC selling 64% at launch in Feb 2020, Forett at Bukit Timah selling 30% in Aug 2020, The Linq @ Beauty World selling 96% at launch in Nov 2020, The Landmark selling 110 units at launch in Nov 2020 and Ki Residences sellng 143 units at launch in Dec 2020.
Given this backdrop, we are counting down 2020 and looking forward to another year of new launches, with one of the first being Parc Central Residences Executive Condominium.
At this point in time we do not have full information on Parc Central, nonetheless in this review of Parc Central, we take a look at information that we already know, some attributes of the project, the surrounding area and some price trends, and hopefully that will help you make a better decision for this launch.
Parc Central Residences EC has quite a bit going for it. It is the first EC launch in the East since 2012, which means that there is expected to be quite a bit of demand from upgraders looking for their new property purchase.
The land plot for Parc Central Residences at Tampines Ave 10 was launched for tender on the 31 Oct 2018, and Tender closed on the 15 Jan 2019.
The land area was 24,933.7sqm, with permissible plot ratio 2.8, min gross floor area at 62,833sqm and max gross floor area at 69,815.
There were a total of 7 bidders, including JBE Development Pte Ltd; Creative Investments Pte Ltd, Santarli
Capital Venture Pte Ltd and Kay Lim Realty Pte Ltd; Sim Lian Land Pte Ltd; Qingjian Realty (Residential) Pte Ltd. and Evia Real Estate (8) Pte Ltd; CDL Constellation Pte Ltd and TID Residential Pte Ltd; MCC Land (Singapore) Pte Ltd.
The winning bid went to Hoi Hup Realty Pte Ltd and Sunway Developments Pte Ltd, with a bid of $434,450,000, which translates approximately to a land cost of $578psf.
(For the full breakdown of tenderers and prices bidded, see: Parc Central Pricing)
With the land cost as a base, typically we add the developer's marketing and construction costs to get an estimate of the developer's breakeven price. Please do note that this is purely an estimate; the actual launch price will differ, refer to the Parc Central site for more info.
Referring to the image below, the breakeven is estimated to be at $978psf.
Let's take a look at the land sales data for another project earlier in 2020, also by Hoi Hup Sunway - Parc Canberra.
Parc Canberra's breakeven price was at $954psf, and its launch was at an average of $1080psf.
(See: Parc Canberra executive condo launches, prices start from S$855,000)
This means a 13% profit margin.
If we apply the same estimate for Parc Central, with a breakeven price at $978psf, the launch price should average at $1,105psf.
There is one more observation that our keen-eyed readers would have picked up.
The land plot for Parc Canberra was sold on Sep 2018, and the land plot for Parc Central was sold on January 2019, just 4 months later, and the breakeven price has increased from $954psf to $978psf, a 2.5% increase.
This is not just due to the fact that Tampines is a more mature estate than Canberra and hence commands a higher price; it is also a display of the fact that land sold under the Government Land Sales program gets more expensive over time.
This has the subsequent impact of rising prices for new launch properties. And this means the longer that you wait, the higher prices will go.
Parc Central is so named because the design inspiration behind the entire development is based off of Central Park in New York, and so in the development you will find lots of greenery and open spaces.
Dining halls will be heavily influenced by New York steak houses and you will be able to find memorabilia paying tribute to Broadway in its function rooms.
A quick rundown of some key pieces of information (for more details, refer here)
The developer for Parc Central Residences is Hoi Hup Sunway Tampines J.V. Pte Ltd, which is a joint venture between two companies - Hoi Hup and Sunway.
This is a successful partnership that has launched several very well received projects thus far (Condo and EC included).
But first, a bit of background about each company.
Hoi Hop has been established in Singapore since 1983, having successfully completed a diversified portfolio of property developments comprising private condominiums, landed housing, cluster-strata housing, executive condominiums and mixed-use commercial developments. To-date Hoi Hup has delivered more than 7,300 residential units.
Their accolades include more than 25 awards including the BCI Asia Top 10 Developers Award in 2012, 2013, 2017 and 2018. In 2018, they received the BCA Quality Excellence Award 2018- Quality Champion (Platinum) Award.
Among the many projects crafted by Hoi Hup, perhaps the most memorable one is Hundred Palms EC, which sold out all its 531 units within seven hours of launch on 22 July 2017.
Consumers who are concerned about the quality and rating of developers will be glad to know that Hoi Hup ranks 3rd in BCA's Top 10 Developers list, just behind City Developments and CapitaLand. This is a testament to their quality of work.
Sunway Developments Pte Ltd is a wholly subsidiary of Sunway Concrete Products (S) Pte Ltd, a Sunway Group company. Having received accolades from international bodies like FIABCI and IFAWPCA, they have also forged strategic partnerships with global investors such as Government Investment Corporation of Singapore (GIC), Malaysian Provident Fund (EPF), Kuwait Finance House (KFH) and Goldman Sachs, Sunway Reit is also the largest Malaysia Reit in terms of asset size as well as free float.
One of Singapore’s leading concrete precasters in Singapore, the company has projects in both public and private sectors, and has worked on several Design & Build Projects such as lkea @ Tampines and The Meadows at Punggol, Design-Build-Sell-Scheme on R&D exercise to implement innovative products such as prefabricated toilet systems and lift upgrading to cater to the needs of the ever-changing market.
Hoi Hup Sunway is the joint venture that brings both of these esteemed companies together.
This partnership is also behind several well received projects, including Ki Residences (selling 143 units on 5 Dec), Parc Canberra (selling 64% at launch in Feb 2020), Rivercove Residences, Arc at Tampines, Sophia Hills, etc.
Given their excellent record for new launches, we are looking forward to seeing how Parc Central will fare.
Parc Central is located at the intersection between Tampines Ave 10 and Tampines Ave 5, directly opposite United World College South East Asia.
Its location might be a little out of the way and also near to an industrial estate! But fortunately Tampines as a whole does offer many amenities and conveniences.
From Parc Central's location, it is relatively easy to get to the heart of Tampines - the Tampines Regional Centre by car or bus.
Other amenities in the area include
For parents planning for kids' education choices, there are good schools around the area:
In terms of connectivity options, there are:
Taking a look at the buses near to Parc Central, we have these buses:
There is another less well known attraction in the area that is very special and rare.
Heading down Tampines Ave 10 in a South-West direction, you'll find Tampines Quarry, a calm body of water, about one-third the size of Bedok Reservoir. This is a hidden gem, which will delight folks who love nature and activities like fishing to biking.
The following is the Site Map for Parc Central, and we will discuss a few aspects of the layout.
First, it is divided into a few main zones that will each have its own character and corresponding facilities
A few other key points about the development:
Taking a look at the Site Plan below, what delights us is how well spaced out the blocks are.
Unlike a lot of other developments that you might see where the blocks are very nearby and there is an overall packed feeling to it, Parc Central is very nicely spaced out.
There is sufficient space for almost all stacks.
This is especially so for the blocks overlooking The Lake zone, where there is a very expansive and luxurious space.
There are a total of 88 facilities marked out as per the Site Plan; and there are 3 main pools for residents.
The overall land plot for Parc Central measures 203.5m by 112.3m.
The narrowest distance between blocks still measures at a very comfortable 19m, with the widest at 87m.
With the Site Plan macro layout in mind, lets take a look at how the units are distributed.
The Parc Central Diagrammatic or Unit Layout Chart. As can be observed, all stacks are uniform and have the same unit type throughout.
All stacks have a Penthouse unit, but not all stacks have a Ground Floor unit - see Stacks 1, 2 and 4.
Here is another schematic diagram illustrating the 3 main types of views that buyers of this development will get.
Taking a macro look across all the floor plans in this development, here are some macro level observations:
You may find it surprising why is that even for the smallest units at 872sqft, there can be enough space for both a yard and a home shelter.
This is a touch from the developer that we really like - and this is achieved because the balcony is not as large. The space saved from having too large a balcony is transferred over to creating space for a yard and home shelter.
Now, strictly speaking the household shelter is meant as a safety measure during a war emergency, and the BCA Guidelines for Household Shelters states that shelters should
"Not contain certain finishes and fixtures that may be hazardous to shelter occupants during a war emergency"
Most households are used to using the home shelter as a storage room (just no indiscriminate hacking and drilling!) and the developer understands how important this is to home owners. Because we all have things that we need to be kept nicely - that vacuum cleaner, ironing board, ladder, luggage bag, powerdrill set has got to go somewhere!
And this is why no matter which unit you choose at Parc Central, a home shelter/storage is there for you to have peace of mind and not worry about converting a room into a store room or overloading the cabinet space of a room.
We've extracted a few floor plans below for you to view; however for the full set please refer to the Parc Central Floor Plans page.
As you are analysing the floor plans, we'd like to bring your attention to the following key points:
Another point to note is the quality of appliances and fixtures that Hoi Hup Sunway has chosen for Parc Central.
For the kitchen hob, cooker and oven, it would be Bosch utilities. This is already quite good for condominium standards, and more so for EC standards. For some other condo developments that you will see, brands slightly lesser in quality are used.
Drawers will have Blum fixtures, and toilets will be decked out in quality fittings from Hansgrohe, Duravit, Geberit, inspiritone.
Now we come to a segment most of our readers will be interested in - the Price Analysis of this development.
Parc Central is situated in Tampines, which is a matured estate with a wealth of amenities, and well-established connectivity options. Being a matured estate means that residents of the area already have access to amenities, food options, travel and transport.
The other key point is that housing demand, and subsequently housing prices, for the area is stable and consistent.
To understand where property prices are headed, the following is a chart that shows the price trend for:
It is evident from a macro level that the price trend well supports the fact that Tampines is a mature estate - prices have been rising at a very steady and consistent rate for the past 15 years, since 2005.
At this point in writing, the average psf is hovering at the $1,200psf mark.
And a more in-depth look specifically at the price performance of Executive Condominiums within District 18.
The same can be said - prices are rising at a steady pace.
The current psf is hovering at $960psf, and if you remember our earlier estimate of Parc Central launching at $1,105psf, it seems higher than the average.
However, as we have seen in the Land Sales analyses earlier, there is an upward pressure on prices overall because as newer land plots are launched for sale, the land prices get higher and higher.
A new development launching at a particular price today will have its priced eclipsed by the next new launch, and the next, and the next.
Taking our discussion a step further, let's look at how the ECs in Tampines have performed.
Here we have selected 4 ECs for analysis purposes. And the reason for choosing these 4 ECs is that their location is nearest to where Parc Central is at.
Referring to the above summary and the price charts below, all of these developments have seen a price increase.
The other point to bring to your attention is that the biggest gains are made by the buyers who bought in earlier, because the prices moved up from there.
(For more info on this analysis, see: Price Analysis of 4 Executive Condominiums in Tampines)
How about the price performance of developments along the same stretch as Parc Central?
Along Tampines Ave 10 and in closer proximity to Parc Central, there are a few other developments (all are private residential condos)
This the compiled price chart across all 4 developments.
There are high and low points for psf, which is to be expected because typically smaller sized units have higher psf and larger units have lower psf (equivalent to how the prices of items go down when you "buy in bulk").
However, prices are generally holding steady, with The Alps already experiencing an uptick in prices, which is good news since it is just beside Parc Central.
Across all of these projects, prices are above $1,100, with the exception of Q Bay Residences, however that development is a little older.
One key aspect of buying into a property is also about assessing the transformations happening in the area, because transformations bring with it change and when these changes enhance accessibility or bring in more developments and demand, property prices will rise.
Let's cover a few important transformations happening in the area.
The current Paya Lebar Airbase was historically the site of Singapore's second international airport, Paya Lebar Airport, from 1955 to 1981. After the airport moved to Changi, the site was converted into an airbase.
It is slated to be relocated to Tengah Airbase starting from 2030.
Its relocation, which was announced by Prime Minister Lee Hsien Loong during his National Day Rally speech in 2013, will free up a massive swathe of land that is 800ha in size - bigger than Bishan or Ang Mo Kio. In fact, the entire area that will be freed up is equivalent to 5 Toa Payohs.
Considering how large the entire area is, the magnitude of transformation is massive.
The authorities are still gathering ideas on how the area should be structured, however it is intended to be an area where there will be residential, commercial, industrial and educational entities. There will be smart work centres to catalyse technological advancements, open spaces for people to interact, and overall, exciting news ways for people to live, work and play.
At the same time, relocation of the Paya Lebar Airbase also means lifting of height restrictions, which means residential units can be built higher.
Paya Lebar Airbase lies towards the West of Parc Central, just beyond a forested area. Its rejuvenation would have ripple effects that would also move prices of the surrounding area, including Parc Central.
Singapore’s development is primarily centred on its status as a regional business centre. This has resulted in the development of commercial areas that provide a distinctive blend of work and play opportunities for industrious residents.
These are places where private enterprise, firms and scholarly institutes have opportunities to come together and collaborate and tap on each other's skills.
Looking at the map of commercial clusters below, there are quite a number in the East. Tampines itself was one of Singapore's first regional centres, and adding to the mix are Expo, Changi Airhub and Changi Business Park, the demand for housing options in the area will not wane.
With more commercial and business clusters coming up, the pace of development within the area will bring enhancements, and along with it, a support level for continual appreciation of property prices.
Despite Tampines being a mature estate, it is continually being enhanced. Tampines North, which will eventually have 17,000 HDB flats, will have a new shopping centre, which will be integrated with the bus interchange, or at the estate's two parks. A pond with a sandy beach is also on the cards, a nod to the area's past sand quarries.
Continual rejuvenation is significant for property price appreciation. If there were no more changes, demand for Tampines will remain at a steady pace, but rejuvenation means that there are newer things for residents to look forward to.
Perhaps the biggest downside for Parc Central is the distance from the nearest MRT Station.
It is 1.5km from Tampines MRT, which means a 10 min bus ride via bus 34, or if you've got the feeling for a little exercise, an 18min walk to the train station.
There is no doubt that properties closer to MRT have better price appreciation; however ECs as a whole have still done very well in terms in capital gain, and not all ECs are situated close to the MRT.
The other aspect that mitigates this location downside is the free shuttle bus to MRT that will be provided for the first 15 months.
The other potential downside (or could be an upside as well) for Parc Central is that the plot of land directly towards the West of the development is currently marked as B2 area in the Master Plan.
B2 zones are areas used or intended to be used for clean industry, light industry, general industry, warehouse, public utilities and telecommunication uses and other public installations. Special industries such as manufacture of industrial machinery, shipbuilding and repairing, may be allowed in selected areas subject to evaluation by the relevant authority and the competent authority.
This means potentially construction work and industrials noises; however, on the upside, this could also means a good stream of tenants looking for rental options.
In conclusion, we believe in the potential of Parc Central and this one development to look out for.
Do keep a lookout for its launch in Jan 2021.
For more details on EC Eligibility Conditions, EC Grants, Resale Levy, EC Financing, please refer to the Parc Central website.
If you'd like to contact us, leave us a note here.
Cheers!