• Joshua Loo

Review: Normanton Park

Updated: Aug 31, 2021


Review Normanton Park FB

UPDATE (17 January 2020): As reported by developer Kingsford Development, Normanton Park had sold over 80% of its One Bedroom and Two Bedroom units over the launch weekend! Continue reading my review to find out what makes it such an interesting purchase for investors!


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Situated near Kent Ridge Park and Ayer Rajah Expressway (AYE), the old Normanton Park has a rich history. It was first designed and built by HDB as a Housing and Urban Development Company (HUDC) scheme in 1977, before gaining its privatized status in 1993.


The old Normanton Park was developed by the Ministry of Defence to provide affordable housing for the Singapore Armed Forces (SAF) commissioned officers. This community allows a strong bond between officers as an added bonus.


General consensus was positive as 81 per cent of owners were keen on proceeding, but was unsuccessful as there were no bids at its reserve price of about $800 million in 2015.


In 2017 however, it was successfully sold for $830 million.


In recent times, you might have heard about its approval of the sale license given by the Controller of Housing (COH). This means that the real estate developer is allowed to market and sell the units before the Temporary Occupation Permit (TOP) date.


The no-sale license was previously imposed earlier in January 2019 due to a previous development from the developer called Hillview Peak. This does not necessarily reflect on the development/building quality of Normanton Park.


The future developments near Normanton Park are plenty and too exhaustive for me to go into detail. These are for example the Greater Southern Waterfront, the upcoming Circle Line extension by 2025, the Greater One-North extension (Dover Knowledge District) and much more.

Further Developments in the Area

This image summarises the future developments near Normanton Park and will spur on Normanton Park’s prices in the coming years.


Technical Specifications


Technical Specifications

Advantages


Estimated Launch Price


Normanton Park En-Bloc Price

I like to start this review strong and talk about what most of you are wondering about first.


Price.


In my opinion, I believe that Normanton Park will launch at an exceptional ~$1,650 PSF. Here are my reasons.


UPDATE (17 January 2020): Prices across all unit types for Normanton Park averages around $1,750 psf.


Based on my usual calculations, I will estimate that Normanton Park will launch at approximately $1900-$2000 PSF. Cross-referencing with other new launches and resale supply, this figure is simply too high. The developers will have no choice but to reduce the asking price to remain competitive.

D5 New Launch Vs Resale

Turn your focus onto the Building Under Construction (BUC) supply, the orange line. You will notice that they are sold on an average of $1614 PSF. This makes it simply ridiculous should the launch price of Normanton Park be at $1900 PSF!


Some of the current BUC projects are Parc Clematis, Kent Ridge Hill Residences, and Twin View.


For now, keep in mind that Parc Clematis is one of the Top-selling BUC projects in 2020.


Next, let us look at the current resale condos prices, which are at $1,155 PSF, based on the 99.co sales transaction trend that I have provided above. You might feel that these prices are somewhat suppressed, and might show that D05 is not a good location to invest in.


Allow me to elaborate on a few points.


Bias Magnification from Large Sample Size


I could have added more segments into the line chart above, but it would have been more confusing, so trust me on this.


On average, most condos within D05 will have made an approximate $300 PSF from the TOP date. However, there are some condos that do not resonate with this statement such as Seahill and The Vision. These two condos are on average breaking even on price.


If you read my previous reviews, one reason why I do not like condominium belts or clusters is that they often cannibalize each other sales and compete heavily in terms of rental opportunities. I believe that this is the case for Seahill and The Vision.

Strong Competition in D5

Parc Riviera, Twin VEW, and Whistler Grand are three relatively new launches in close proximity. What do you think will happen shortly once the spark of a new la