Review: Parc Central Residences, New Tampines Executive Condominium in 2021
Updated: Jan 7
I have long been an avid supporter for purchasing an Executive Condominium (EC), should you be able to fit the requirements. In a previous article titled “Understanding Executive Condominiums in Singapore”, I covered the advantages and disadvantages of purchasing an EC. In this review, I will be covering a highly anticipated, upcoming EC located at Tampines Avenue 10, which will be called Parc Central Residences. There has been a lot of anticipation for this launch when it was first announced, and we are expecting its launch to be in 2H 2020.
I understand that Parc Central Residences has not been launched yet. Therefore, this will serve as a preliminary review on the estimated Parc Central Residences price at launch, along with other noteworthy points that we feel will be important for the buyer. This will help you to start prioritizing your finances as purchasing an EC can be challenging due to the price difference from a HDB.
The Review on Parc Central Residences will be updated when more information regarding the launch is released and will be made available here on my website. So do come back often to check for updates. Or if you rather subscribe to our Facebook page.
The last time a Tampines EC launched was in 2013, Citylife @ Tampines. Ever since then, there is a lot of pent-up demand for a new EC in Tampines. Tampines is a fantastic location because it is Singapore's first regional center. This makes it ripe for plenty of opportunities for investors. Home occupiers also get to enjoy the numerous benefits of what a mature estate can bring.
We will elaborate on the details in regards to Parc Central Residences, followed by what makes this development attractive and also some of the drawbacks which might be affecting this land site.
UPDATE (30 August 2020): As we are approaching close to the Q4 2020, there seems to be no news to agents yet in regards to the Parc Central Residences launch. Do follow this review closely as we will be updating it with more information in time to come.
UPDATE (28 September 2020): We have received an estimated launch period of Q1 2021!
UPDATE (07 January 2021): The e-application for Parc Central Residences is open from Jan 7 to 19, and the booking of units will begin on Jan 23. Contact me now to your express your interest!
Proposed Number of Units
There will be 11 blocks of 16-story apartments (700 units) to be released for this Tampines EC development. Which is the standard size for a mid-ranged condominium in Tampines. To place this into perspective, Treasure at Tampines have twenty-nine residential blocks of 12 storeys each.
UPDATE (28 September 2020):In addition, bedroom types will be an interesting selection. There will be no studio and 2 Bedroom units. Instead, 3, 4 and 5-Bedroom Types will be made available. I feel that this is a good opportunity for communities to tightly bond as we expect these bedroom types to accommodate for families.
UPDATE (18 Dec 2020): Looking at the site plan, there are no generally quiet spots as all the blocks are in close vicinity to the facilities like the No. 12 Quarry Pool and the No. 59 Lake Pool.
In my opinion, I will prefer selecting a unit in block 125 as it generally is away from the swimming pools and tennis court. Most importantly, block 125 is not close to Tampines Avenue 10 and Tampines Avenue 5. These roads can generate significant traffic and might be a mild annoyance.
Hoi Hup Realty Pte Ltd and Sunway Group have been awarded the site at Tampines Ave 10, and the tender was closed on 15th January. Out of 7 bidders, Hoi Hup Realty Pte Ltd and Sunway Group had been awarded the highest bid of S$434.4m which is around S$578 PSF of the GFA.
Hoi Hup Realty Pte Ltd
Founded in Singapore in 1983, Hoi Hup Realty Pte Ltd is an established niche property developer. They have 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 quality homes.
With an eye for details and a passion for excellence, Hoi Hup Realty Pte Ltd has gained invaluable knowledge and experience from the numerous projects we have successfully completed. This knowledge and experience provide a good base in our continuous pursuit of a high level of quality and innovative products for our home buyers.
In addition to our ability in achieving high standards of building excellence, Hoi Hup Realty Pte Ltd is well-attuned to the changing needs of clients. This client and user-centric approach have helped us grow into one of the biggest and well-recognized property developers. They have received more than 25 awards and accolades including the BCI Asia Top 10 Developers Award in 2012, 2013, 2017, and 2018.
One of their latest developments is the 33-story mixed-use Royal Square at Novena. This landmark development consists of retail units, restaurants, medical suites and a 250-room hotel operated by the Marriot Group as the first Courtyard by Marriot branded hotel in Singapore. The development is also the first project in our stable that has received a Green Mark Platinum Award from BCA Singapore, marking the first success in our effort to create more environmentally sustainable products.
Established in 1974, Sunway Group is one of Malaysia’s largest conglomerates with 12 business divisions that operate across 50 locations worldwide, with a focus on real estate, construction, education, healthcare, retail and hospitality. Powered by our 16,000 strong team, we are committed to advancing the United Nations Sustainable Development Goals (SDG) and continue to align our business strategies to meet the needs of our communities in line with the SDG agenda.
Sunway’s unique Build-Own-Operate business model makes them an integral stakeholder of the communities in which they operate, particularly the sustainable townships of Sunway City Kuala Lumpur, Sunway City Ipoh in Perak and Sunway City Iskandar in Johor, and a host of other integrated developments which collectively span more than 5,000 acres across Malaysia.
Their three public-listed companies — Sunway Berhad, Sunway Construction Group, and Sunway REIT, with a combined market capitalization of RM 17 billion — form a real-estate value chain that exemplifies socially responsible business practices, evidenced by their listing on the FTSE4Good Bursa Malaysia Index. Underscoring Sunway Group’s long-standing commitment to the sustainability agenda, founder and chairman Tan Sri Dr. Jeffrey Cheah AO through his eponymous Jeffrey Cheah Foundation (JCF), endowed US$10 million to the United Nations to set up the Jeffrey Sachs Center on Sustainable Development at Sunway University in 2016 to promote the sustainable development agenda in this part of the world. The center is led by world-renowned economist and special adviser to the UN Secretary-General, Professor Jeffrey Sachs; and serves as a hub for education and advancement of sustainability across Southeast Asia.
For the full list of amenities, please check out this link here as the list will automatically be updated regularly. Parc Central Residences is well served by plenty of bus stops, childcare centers, schools, kindergartens and clinics, all within a 500-meter radius, which is approximately a 5-10 minutes walk.
Some of the standout amenities include the United World College of South East Asia – East, which is located directly opposite the road.
What Makes it Attractive?
Parc Central Residences Price in Comparison to Other New Launches
I had lived in Tampines for most of my life, and half of it in an EC, which was privatized about 10 years ago. Since purchased, the price had almost gone up by double! This is also experienced by many of my neighbors and others who had previously lived in an EC. However, with the rising cost in construction and land prices, its best to remain prudent in your expectations. This article by stacked homes sums it up really nicely on the profitability of past ECs that were launched.
Should you be interested in purchasing Parc Central Residences, be sure to have realistic expectations. You should be expecting roughly an 8% p.a. increase in your price quantum.
We can calculate the rough Parc Central Residences price launch, by calculating its estimated construction costs with its profits.
Land Cost: S$578 PSF
Construction & Miscellaneous Cost: 40% * S$578 PSF = S$231.2 PSF
Profit: S$578 + S$231.2 = S$809.2 * 0.3 = S$242.76
Estimated Launch Price: S$1051.96 PSF
Taking into consideration to launch prices for a private condominium in Tampines for example, such as Treasure at Tampines, there will be an estimated $100 PSF difference from Parc Central Residences for mid-sized units.
With this launch price taken into consideration, we can expect the 3 Bedroom to be around $1050 - $1070 PSF whereas for the bigger units like 5 Bedroom, to be around $1030 - $1050 PSF.
Tampines Avenue 10 is lined with many other condominiums that were launched over the past decade. This means there will be strong competition for rentals within these developments. Parc Central Residences escapes this trap as it is an EC first and foremost. This makes it a better option for the homeowner to eventually rent out their units.
With the lower price quantum as compared to the other developments, this enables rentals for Parc Central Residences to be priced competitively, yet provide adequate cash flow for their buyers.
UPDATE (07 January 2021): From the developers' indicative pricing, three-bedroom units start from $956,000, four-bedroom units start from $1,258,000, and five-bedroom units start from $1,609,000.
Current Prices for Tampines ECs from the Past
How will the price of the Parc Central Residences perform? Let us see refer to the price trends of two Tampines ECs so as to gauge Parc Central Residences potential performance;
The Tampines Trilliant
Citylife @ Tampines
Source: URA, https://www.edgeprop.sg
Comparing the data from 2013 – 2020,
The Tampines Trilliant launch price $807 to $1061 PSF
Citylife @ Tampines launch price $796 to $976 PSF
The Tampines Trilliant had just crossed their 5-year mark, some restrictions have been lifted and homeowners who have bought early at launch can sell their unit in the open market. This had resulted in a sudden surge in sales volume, which showed an average of 20% capital gain.
For Citylife @ Tampines, for most homeowners the MOP will be in 2021, this resulted in a lower amount of transactions at this point in time as most investors who have bought into these ECs are still waiting. From the transacted chart, there was also an estimated 20% capital gain.
Even with the aforementioned data, it is best to expect around 10-15% capital gain. Which is still a sizeable amount! However, as we have mentioned earlier, do keep in mind that the average for all ECs in Singapore is around 8%.
Potential Rental Yield
Comparing between 2020 and 2015, rentals for condominiums around Tampines Avenue 10 have increased from $2.80 to $3.23 PSF.
One of the latest rental transaction at this area in Mar 2020 was The Alps Residences, 3 Bedroom at 950sqft. The price is at $2,800 ($2.95 PSF).
Do take note that regarding EC rentals, it follows HDB guidelines. This means that you will have to fulfill the Minimum Occupation Period (MOP) of 5 years before renting out your EC.
In a sense, this can also work for the home buyer. Even after a period of 5 years, Parc Central Residences will be the newest offering along the stretch of Tampines Avenue 10 condominiums, which makes it the most appealing choice for tenants in that area.
From the location plan, there will be a future proposed industrial development just located across the road from the building site, this should be one of the homeowners main deciding point if they are interested in the location.
Based on the URA Master Plan, the proposed area is used to facilitate B2 industries, which might include the manufacturing of industrial machinery. However, the general area comprises more of clean and light industries and I feel developments of those forms are much more likely.
On the flip side, investors might favor this location as having a unit close to this industrial development might bring about potential tenants in the future. These tenants can potentially be in managerial positions, and it can be a very prime location. Do keep in mind that there are other condominiums in the surrounding area like The Tapestry and The Alps Residences (still under construction).
If you prefer a new launch that is away from these condominiums to avoid competition, you can consider Treasure at Tampines, which we will link our review to it below.
Distance from Tampines Central
As it is located away from Tampines central, walking will take you about 30 minutes whereas taking a bus will be approximately 15 to 25 minutes.
Parc Central Residences is located right at the junction of Tampines Avenue 10 and Tampines Avenue 5, which saves you a minute or two worth of traveling time as compared to the other condominiums around the vicinity.
Purchase Price Breakdown
This price is based on the estimated 3 Bedroom Size (950sqft) at $1050 PSF and is not the exact price released from the developers yet! More information will be released subsequently, so be sure to come back to this page!
The bank loan interest rate is currently based on fixed loan rates given at this point and is subjected to changes.
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Thanks for reading our review of Parc Central Residences. This review will be updated regularly once we have received more information, so remember to revisit it often to get the latest updates.
With it being the only EC in Tampines right now, this purchase will be a solid choice for young couples or simply HDB upgraders.
The main advantage of this development is similar to all other ECs, which is its fantastic entry price and high rental yield, once the MOP is reached.
The drawbacks related to a certain level of uncertainty due to the neighboring Industrial sites and its distance from Tampines Central.
KOPAR AT NEWTON
TREASURE AT TAMPINES
MARINA ONE RESIDENCES
If you are interested in looking for New ECs which suit your specific financial situation, contact us at +65 96329840 or estatemagnates.com! Our consultations do not have a charge, so let us assist you!
The views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author’s employer, organization, committee, or other group or individual. The author does not accept any responsibility whatsoever for any harm or loss arising from accessing or relying on information contained in this blog post.