After the previous round of treaty negotiations fell through, private condo Chuan Park is attempting another round of collective sale. Although it managed to secure the green light from more than 80% of its owners in October 2021, the condo did not manage to close on the sale.
This makes it the fourth round of collective sale, with the same indicative price of S$938m.
In 2018, the condo failed to secure a sale with a guide price of S$900m. Subsequently, they lowered the price to S$820m before raising it to S$938m after its collective sales committee (CSC) conducted intensive research into the property market.
Fourth time’s the charm?
Made up of 444 residential units and two commercial units, it sits on a site area of 400,589 sq ft with a gross plot ratio of 2.1. This means an achievable gross floor area (GFA) of approximately 841,236 sq ft.
After factoring in a 7% bonus GFA and an upgrading premium of S$192.62m, the land cost translates to around S$1,256 psf ppr.
Subject to necessary approvals, a new development of 900 to 919 units can be built, which is twice the number of its current units.
Chuan Park is running on a 99-year lease, which began in 1980. The lease will expire in about 57 years, on June 5, 2079.
Why the previous sale may have fallen through
1. Land size too large
With the five-year develop-and-sell ruling imposed on developers, it’s a challenge considering the size of Chuan Park’s development. Nine hundred units would mean that the project is almost a mega-development.
If the developers fail to meet the time restriction, they lose 30% in Additional Buyers Stamp Duty (ABSD) of the land price. This poses a risk and disincentivizes developers from purchasing large land plots.
2. Owners may need to pay SSD
16 units at Chuan Park were sold in the last three years, which means the owners will have to pay Seller’s Stamp Duty (SSD) if the en bloc deal goes through. SSD applies to owners selling their flat within the first three years of purchase.
• Selling within one year of purchase – 12% SSD
• Selling within two years of purchase – 8% SSD
• Selling within three years of purchase – 4% SSD
Even if the owners were offered an attractive price for their unit during the en bloc negotiations, SSD alone may cannibalise any potential profits from the sale.
The current average transaction price for a 3-bedroom condo is S$1,770,000. Here’s how much the condo owners will have to fork out in SSD.
| Year of sale | SSD (%) | SSD (S$) |
| First year | 12% | S$212,400 |
| Second year | 8% | S$141,600 |
| Third year | 4% | S$70,800 |
In fact just last year in mid July, a 2,045 sqft unit sold for S$1.8m, which translates to S$216,000 in SSD charges for the owner. Ouch.
Chuan Park
Located in the mature estate of Serangoon at 240 to 250 Lorong Chuan, Chuan Park enjoys close proximity to many amenities and educational institutes.
Amenities near Chuan Park
Residents of Chuan Park have access to two main malls, each with a variety of retail, dining and entertainment options.
They can either hop on a 15-minute bus ride to Junction 8, or take a 10-minute journey to NEX.
NEX is the largest mall in the north-eastern part of Singapore, boasting 340 stores and services. Furthermore, the mall is integrated with the Serangoon MRT station and bus interchange, so residents can easily purchase their amenities from Cold Storage or Fairprice before heading home.
Junction 8, in comparison, is a smaller heartland mall with 174 stores. It is right outside the Bishan MRT station and bus interchange.
Serangoon Gardens is a 6-minute drive away, famous for Chomp Chomp Food Centre and the many cafes and restaurants lining the streets.
Schools near Chuan Park
Two preschools (My First Skool and PCF Braddell Heights) are a 10-minute walk away, at Blocks 305 and 306.
Other schools include:
• St Gabriel’s Primary school (650m)
• Yangzheng Primary school (800m)
• Zhonghua Primary school (850m)
• Zhonghua Secondary school (850m)
• Nanyang Junior College (400m)
• CHIJ Our Lady of Good Counsel (1.3km)
Connectivity
Lorong Chuan MRT station is situated right outside the condo, making it a breeze for commuters to ride the Circle Line.
Those who drive can access the major Central Expressway (CTE) in four minutes via Ang Mo Kio Ave 1. Driving to Orchard Road or Raffles Place is just a quick 15 minutes away.
The tender for Chuan Park closes on Apr 26 at 3pm.
Do you think this will be Chuan Park’s final collective sale? Let us know in the comments section below or on our Facebook post.
If you found this article helpful, check out What determines the value of an en-bloc property? and 7 reasons why a collective sale tender fails.
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About Jamie Wong
Looking to sell your property?
Whether your HDB apartment is reaching the end of its Minimum Occupation Period (MOP) or your condo has crossed its Seller Stamp Duty (SSD) window, it is always good to know how much you can potentially gain if you were to list and sell your property. Not only that, you’ll also need to know whether your gains would allow you to right-size to the dream home in the neighbourhood you and your family have been eyeing.
One easy way is to send us a request for a credible and trusted property consultant to reach out to you.
Alternatively, you can jump onto 99.co’s Property Value Tool to get an estimate for free.
If you’re looking for your dream home, be it as a first-time or seasoned homebuyer or seller – say, to upgrade or right-size – you will find it on Singapore’s fastest-growing property portal 99.co.
Meanwhile, if you have an interesting property-related story to share with us, drop us a message here — and we’ll review it and get back to you.
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