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Normanton Park: Why Everyone (Even Property Agents) is Buying This New Launch Condo
If you’re in the market for a new home, chances are, you would have heard of Normanton Park. You may be wondering why that name sounds familiar, so let us jog your memory for a bit: in 2017, the former Normanton Park was sold en bloc for $830.1 million to Kingsford Huray Development.
This was back during the en bloc frenzy when developers were snapping up land for redevelopment, before the 2018 cooling measures that slapped developers with increased Additional Buyer’s Stamp Duty (ABSD).
Fast forward to 2021, Kingsford launched the new Normanton Park in January and the project promptly made headlines for selling about 600 units on its launch day – that’s almost one third of its 1,862 units in the development.
Additionally (and perhaps most interestingly), it seems that Normanton Park is seeing a higher-than-normal percentage of property agents buying units for themselves. According to Kingsford, over 10% of the units sold at launch were bought by agents who were marketing the project.
Property Agents Don’t Usually Buy the Projects They’re Marketing
Now, this phenomenon is particularly interesting as it is actually quite rare for property agents to buy units in the projects they’re selling. This has nothing to do with how genuine they are as salespeople, but rather, it is an issue of practicality.
Say an agent sells for 10, 15 or even 20 projects in a year; it is simply impossible for them to buy a home in multiple developments. Even if they identify many projects that are “good buys”, few have the financial means to buy more than one. Not only is private property in Singapore extremely expensive, but there is also 1. the ABSD, which makes it hard to own multiple properties at once, and 2. the Seller’s Stamp Duty (SSD), which prevents investors from “flipping” property in the short term.
As such, a project must really stand out for a property agent to take the plunge. And in Normanton Park’s case, it wasn’t just one or two agents – it was over 60 of them!
So what exactly is it about Normanton Park that is so special? To find out, we spoke to three property agents who have bought (or are intending to buy) a unit there.
Sergius Seah, Associate Group Director, Propnex Realty
Sergius is intending to buy a two-bedroom unit for investment. He is in the midst of selling his current investment property and intends to rent out his unit at Normanton Park for income.
Ken Low, Managing Partner, Singapore Realtors Inc (SRI)
Ken also bought a unit at Normanton Park for investment. However, instead of focusing on passive income like Sergius, Ken is looking to build capital (i.e. to sell the properties for a profit after three to four years).
Valerie Lee, Associate Division Director, ERA Realty Network
Valerie bought a two-bedroom unit on a high floor and with a sea view. She bought it for investment but is also open to leaving it for her son to live in.
Normanton Park Has Great Investment Potential
As you may have noticed, all three agents we spoke to – Sergius, Ken and Valerie – are buying or have bought units at Normanton Park with the primary intention of investment. Based on their research and analysis, here are the top reasons why Normanton Park is a good investment property:
Projects Similar to Normanton Park Are Selling For Much More
One of the first things any property investor considers is the price, and according to the agents, Normanton Park’s selling price of $1,750 psf is a very reasonable entry price.
“Other developments in the area, even those further away from the city, have already transacted at $1,9XX psf or higher,” says Ken. Valerie agrees, saying that the Normanton Park is “definitely undervalued” and prices are “more similar to OCR prices” but with all the perks of being in the city fringe.
Thanks to Transformations in the Area, The Value of Normanton Park is Likely to Appreciate
With such reasonable prices, there is room for strong capital appreciation. The agents highlighted that based on their research and study of the URA Master Plan, Normanton Park’s location puts it in a great position to benefit from upcoming transformations in the area.
South of Normanton Park is the highly-anticipated Greater Southern Waterfront, which upcoming roads will seamlessly connect to. Such developments are very encouraging – as Ken puts it, “The government does not pump in money to build infrastructure for nothing.”
Hence, as the transformation takes shape over the next few years, the market value of Normanton Park is expected to increase significantly.
Hugged By MNCs, Normanton Park Expects to See High Rentability
There are two main ways to invest in property: either sell it for profit or rent it out for income. Not only did the agents assess Normanton Park as having great potential for capital appreciation (as above), but they also have huge confidence in its future rentability.
“I think Normanton Park’s rentability will be very good. With Science Park 1 and 2, One North and more, there are a lot of people working in the area but not many housing choices,” says Sergius.
Indeed, with so many key commercial nodes yet so few condos in the area, there is likely to be a sizable pool of tenants that investors can tap into.
Most Importantly, Normanton Park Is A Wonderful Place to Live In
We’ve talked a lot of how Normanton Park could be a great investment asset. But how about Normanton Park as a home? After all, that’s the true purpose of residential properties, for people to live in.
The launch-day sales numbers speak for themselves, but when asked, all three agents agreed that one of the most important considerations was whether Normanton Park makes a good residential project. This is because at the end of the day, whether or not you can rent or sell the unit depends on how appealing the property is to tenants and buyers.
With around 20 new launch condos expected this year, what really sets Normanton Park apart? Here are some of the key features as highlighted by Ken, Sergius and Valerie.
1. Excellent city-fringe location
Normanton Park is located in District 5, in the Rest of Central Region (RCR). Sitting on the city fringe, it is very accessible and well-connected to the city. It is 1.2km away from Kent Ridge MRT and near the Ayer Rayah Expressway (AYE).
2. Beautiful Design and Unique Amazon River Theme
Another aspect of Normanton Park that stands out is the façade. The development has one of the largest land plots, and yet, boasts about only 20% development footprint. The rest will be used for landscaping and for facilities.
3. Good Layouts and Stunning Views
A lot of thought has gone into the design of Normanton Park. The buildings are arranged in a U-shape to face the surrounding greenery, so almost every unit can enjoy unblocked views. For those who like high floors, Normanton Park’s lowest floor (2F) will be 18.8m above the facility deck and elevated to the equivalent of a seventh-floor unit elsewhere. Some units even have both park and sea views, which is rare to find.
Striking The Perfect Balance with Normanton Park
As you can see, Kingsford seems to have struck the perfect balance with Normanton Park – not only is it a wonderful place to live in, but it also has great investment potential. The agents shared that although they bought Normanton Park for investment, if things do not work out, they would also be very happy to live there.
If you’re interested in buying a home there, you can find out more about Normanton Park here.
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