After the previous round of treaty negotiations fell through, private condo Chuan Park is attempting another round of collective sale. Although it managed to secure the green light from more than 80 per cent of its owners in October 2021, the condo did not manage to close on the sale.

This makes it the fourth round of collective sale, with the same indicative price of $938 million.

In 2018, the condo failed to secure a sale with a guide price of $900 million. Subsequently, they lowered the price to $820 million before raising it to $938 million after its collective sales committee (CSC) conducted intensive research into the property market.

Fourth time’s the charm?

Made up of 444 residential units and two commercial units, it sits on a site area of 400,589sqft with a gross plot ratio of 2:1. This means an achievable gross floor area (GFA) of approximately 841,236sqft.

After factoring in a seven per cent bonus GFA and an upgrading premium of $192.62 million, the land cost translates to around $1,256psf ppr.

Subject to necessary approvals, a new development of 900 to 919 units can be built, which is twice the number of its current units.

Chuan Park is running on a 99-year lease, which began in 1980. The lease will expire in about 57 years, on June 5, 2079.

Why the previous sale may have fallen through

1. Land size too large

With the five-year develop-and-sell ruling imposed on developers, it’s a challenge considering the size of Chuan Park’s development. Nine hundred units would mean that the project is almost a mega-development. 

If the developers fail to meet the time restriction, they lose 30 per cent in Additional Buyers Stamp Duty (ABSD) of the land price. This poses a risk and disincentivises developers from purchasing large land plots. 

2. Owners may need to pay SSD

16 units at Chuan Park were sold in the last three years, which means the owners will have to pay Seller’s Stamp Duty (SSD) if the en bloc deal goes through. SSD applies to owners selling their flat within the first three years of purchase.

• Selling within one year of purchase — 12 per cent SSD
• Selling within two years of purchase — eight per cent SSD
• Selling within three years of purchase — four per cent SSD

Even if the owners were offered an attractive price for their unit during the en bloc negotiations, SSD alone may cannibalise any potential profits from the sale.

The current average transaction price for a three-bedroom condo is $1.77 million. Here’s how much the condo owners will have to fork out in SSD.

In fact just last year in mid July, a 2,045sqft unit sold for $1.8m, which translates to $216,000 in SSD charges for the owner.

Chuan Park

Located in the mature estate of Serangoon at 240 to 250 Lorong Chuan, Chuan Park enjoys close proximity to many amenities and educational institutes.

Amenities near Chuan Park

Residents of Chuan Park have access to two main malls, each with a variety of retail, dining and entertainment options.

They can either hop on a 15-minute bus ride to Junction 8, or take a 10-minute journey to Nex.

Nex  is the largest mall in the north-eastern part of Singapore, boasting 340 stores and services. Furthermore, the mall is integrated with the Serangoon MRT station and bus interchange, so residents can easily purchase their amenities from Cold Storage or Fairprice before heading home.

Junction 8, in comparison, is a smaller heartland mall with 174 stores. It is right outside the Bishan MRT station and bus interchange.

Serangoon Gardens is a six-minute drive away, famous for Chomp Chomp Food Centre and the many cafes and restaurants lining the streets.

Schools near Chuan Park

Two preschools (My First Skool and PCF Braddell Heights) are a 10-minute walk away, at Blocks 305 and 306.

Other schools include:

• St Gabriel’s Primary school (650m)
• Yangzheng Primary school (800m)
• Zhonghua Primary school (850m)
• Zhonghua Secondary school (850m)
• Nanyang Junior College (400m)
• CHIJ Our Lady of Good Counsel (1.3km)

Connectivity

Lorong Chuan MRT station is situated right outside the condo, making it a breeze for commuters to ride the Circle Line.

Those who drive can access the major Central Expressway (CTE) in four minutes via Ang Mo Kio Ave 1. Driving to Orchard Road or Raffles Place is just a quick 15 minutes away.

The tender for Chuan Park closes on April 26 at 3pm.

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This article was first published in 99.co.