This 805-Unit Condo Sold 70% Within Its First Year — Here’s How It Has Performed Since

The launch of the 805-unit Park Colonial in 2018 was closely followed by market watchers given prevailing conditions in the property market back then. Sentiment was picking up but it was unclear if the new project could move that many units when some buyers still had a wait-and-see attitude.

In a further twist, Park Colonial previewed over the weekend of June 30-July 1 2018, and just days before the government introduced new property cooling measures on July 6.

The surprise introduction of these new measures saw buyers rush to secure units at the condo before stricter additional buyer stamp duties (ABSD) and loan limits kicked in the following day. This resulted in a frenzied launch night for Park Colonial, which moved more than 300 units at an average price of around $1,700 psf; a strong showing for a Rest of Central Region (RCR) project at the time.

In many ways, Park Colonial became a bellwether for the new launch market in 2018, and an indicator of the recovering property market in the years that followed. In this deep dive, we’re going to look at how it has performed since its launch, and whether its momentum has continued.

How was Park Colonial positioned at launch, and did it deliver? 

When it was launched for sale, Park Colonial offered attractively priced new private homes in the Woodleigh neighbourhood. The development is next to Woodleigh MRT station on the North-East Line (NEL), and close to the nascent Bidadari HDB estate.

Woodleigh MRT is also one stop from Serangoon MRT which is connected to NEX, one of the largest suburban shopping malls in Singapore and a key commercial centre of the North-East region.

In 2023, the completion of Woodleigh Mall – the commercial component of the integrated Woodleigh Residences – would offer a more convenient retail centre for residents.

The site of Park Colonial was awarded to a Chip Eng Seng-led consortium in July 2017, after the group submitted the top bid of $700.7 million ($1,110 psf per plot ratio) for the 1.95ha site.

But this was after the mixed-use GLS site opposite – which would be developed into Woodleigh Residences – was sold to Singapore Press Holdings and Kajima Development for $1.132 billion ($1,181 psf ppr) a month earlier in June 2017.

Some analysts at the time suggested that the mixed-use development might see a significantly higher breakeven of around $1,771 psf, compared to Park Colonial’s lower breakeven of approximately $1,686 psf.

This estimated price gap drew buyers’ attention, since it implied:

• The next new private residential project in this area would be much pricier
• If you bought now, the upcoming Woodleigh Residences could then raise the benchmark $PSF much higher in future, translating to stronger gains

In addition, Woodleigh Residences would be an integrated development, which typically command relatively higher $PSF prices.

The launch of Park Colonial and its initial positioning 

There were high expectations of the growth potential of the Woodleigh area when Park Colonial eventually hit the market, largely due to the supply of new Build-To-Order developments planned for the Bidadari estate.

When the first BTO flats in Bidadari launched in 2015, they recorded some of the strongest application rates and were always over-subscribed. When these flats entered the resale market it was believed that condos nearby – like Park Colonial – would benefit from a future pool of HDB upgraders, who were expected to make sufficient capital gains to afford the upgrade.

We also mentioned the sale of the (expectedly) pricier Woodleigh Residences. While Park Colonial isn’t directly linked to the MRT station and mall, being across the road meant residents there still had access to the same amenities; but bought their home at a much lower price tag to boot.

So, the proposition was straightforward: Park Colonial allowed you to buy into the same major residential neighbourhood near Bidadari and Serangoon, but at a relatively lower entry price. And for the more investment-minded, it was a location with excellent prospects for resale gains.

The launch of Park Colonial also benefitted from an unexpected boost when new property cooling measures were announced

In July 2018, new property cooling measures were announced which would raise the ABSD and impose stricter loan curbs. These measures would take effect the day after the announcement, so in the hours leading up to midnight, the show flats for Park Colonial (as well as some other new launches at the time) stayed open for late-night bookings.

Park Colonial moved about 34% of its units on that night alone. Here’s how its units moved subsequently: 

Even if we set aside the buying surge on the night the cooling measures were announced, we can see strong demand for units at Park Colonial from the outset with close to 70% of the units sold within the first year of its sales.