CEL Development, the property development arm of listed construction group Chip Eng Seng Corp, will preview the 720-unit Grandeur Park Residences on Feb 18. The 99-year leasehold condominium is located next to the Tanah Merah MRT station at the corner of New Upper Changi Road and Bedok South Avenue 3. The units in Grandeur Park Residences will be priced at an average of $1,350 psf, says Raymond Chia, Chip Eng Seng’s executive chairman and group CEO.
The developer purchased the site a year ago with a bid of $419.38 million, or $761 psf per plot ratio (ppr). This translates into a breakeven price of about $1,100 psf, according to Desmond Sim, CBRE head of research for Singapore and Southeast Asia. While the average selling price of $1,350 psf may not reflect a bullish profit margin, Chip Eng Seng, being a builder and developer, has better control over construction cost than most mainstream developers, he points out.
In the vicinity of the Tanah Merah MRT station, the latest project to be completed is the 726-unit The Glades, a 99-year leasehold condo by Keppel Land and China Vanke. Last month, 15 units were sold at a median price of $1,424 psf. As at end-January, 628 units (86.5%) had been sold, according to URA data. The project was launched in September 2013 and initial sales prices averaged $1,483 psf.
Chia (centre) flanked by CEL Development executive directors Ng (left) and Chng (right)
On the opposite site of New Upper Changi Road is the 582-unit Urban Vista, developed by Fragrance Group in a joint venture (JV) with World Class Land, the property development arm of Aspial Corp. Launched in March 2013 at an average of $1,481 psf, the project was fully sold and completed last year.
Adjacent to Grandeur Park Residences is eCO, a 748-unit development by Far East Organization, Frasers Centrepoint and Sekisui House. The condo was completed late last year and all except one unit, a townhouse, was still available as at end-January. “We have very little competition in the area, as most of the projects in the neighbourhood are already completed and either substantially or fully sold,” says Chia. “And there’s no new competition coming up in the near future.”
Although URA has indicated that there is a “future residential development site” adjacent to Grandeur Park Residences, it has not been released on the Government Land Sales (GLS) programme for 1H2017.
Preview of the 720-unit Grandeur Park Residences starts on Feb 18, with the launch a fortnight from now
The showflat of a five-bedroom unit at Grandeur Park Residences with private lift lobby