Is Normanton Park worth buying?

District 5, the largest launch in the West Zone, was a huge success. Nearly a third (1,862 condo units) were sold within the first day, at an average price of $1,750 per square foot. What’s the new launch condo? It is the Normanton Park.

It has been sold an additional 20%+ since then to surpass the 50% mark in total sales! Check out the balance units left in Normanton Park.

This is a huge feat for a project this large. Similiar condo launch is the Treasure at Tampines in the East?

Did you know that the first 800 units will be eligible for a lucky draw to win a Mercedes-Benz A-Class 180 Hatchback?

There are 10 available, and early buyers will be happy to see Normanton Park sales surpass the mark.

The project was previously hit by a “no-sale licence” in January 2019 and it was expected to only be able to commence sales after obtaining its Temporary Occupation Permit (TOP).

This was a serious financial burden for the developer, who had to pay out its own money upfront for all construction before it could sell any units.

They are probably very happy, I am sure.

Developers have even been forced to halt their plans due to high demand. Since launch, prices have been raised a few times.

Normanton Park, however, is a different beast.

Parc Clematis was another mega-project in the West that I have never written about, but Normanton Park is something I cannot miss.

It’s fitting that I make this my most intense review/preview to match the enormous scale of the project.

Is Normanton Park a good buy?

Scope

This article will not cover Normanton Park facts, as I do often.

I have created a new section on my website with all the information about the Project.

Source: https://www.normantonpark-condos.sg/

This is what I will be covering in this article.

  1. Demand and Supply
  2. Unique Factors
  3. Future Potential
  4. Analyse of Price
  5. Yield and Rental Analysis
  6. SWOT Analysis

Let’s get started!

Demand and Supply in Normanton Park

Have you heard about the Greater One-North?

Normanton Park District 5, is right at the edge of the area, bordering Kent Ridge Park in the South and Science Park 1 to the West.

While the focus has been on Raffles/Tanjong Pagar’s traditional CBD, Normanton Park has shined the spotlight back to an area that has remained relatively low-profile: One North.

However, property agents and developers are merely loving One-North. Is it just about selling units at Normanton Park or is there more?

If it was really so great, why didn’t more coverage get on it?

Let’s take a deeper look.

Here is a look at Greater One-North from the 2019 Master Plan.

Normanton Park can be found in the lower right corner.

Let’s quickly cover the legends of colour…

Dark Blue (near top): Commercial. There are two offices there: The Metropolis and Moe Building. There are many notable companies that have offices here, including Shell Oil & Gas giant and Procter & Gamble consumer goods giant.

Light Blue (multiple spots in the right-hand half): Business Parks. These are available directly from URA and are intended for businesses that engage in high-technology, R&D (R&D), high-value-added and knowledge-intensive business activities.

Pale yellow (with the E) – Educational Institutions. The large one to the left is National University of Singapore (NUS).

The Greater One-North is largely made up of Business Parks.

When you think about Business Parks, what comes to your mind?

Changi Business Park is my favorite place.

What’s the connection?

Major Banks have back-end offices.

Marketing hype is naturally directed towards Jurong, which includes the Jurong Lake District, Jurong Innovation District, and the potential High-Speed Rail Terminus.

Or Paya Lebar with its recent sprouting and future relocation of the Paya Lebar Airbase.

Do not mix the Business Parks’ light blue with the above. The light blue above signifies mixed residential and commercial zones.

However, being sexy does not necessarily mean a bad investment.

In reality, less hype could mean more sensitive pricing (more about that later).

As I said, Business Parks are businesses that engage in business activities.High technology

Here are some examples of companies that recently chose to establish new headquarters at One-North.

This trend should continue with the continued rise of tech companies and decentralization of offices away from the traditional CBD.

According to the correlations, more offices equals more people and more housing demand.

The Region has a lot of supply

Take a moment to think about these two questions.

Concerning the Greater One-North region

  1. Are there any housing shortages?
  2. What was the most recent launch?

Let me give you some details.

Below is a map showing the locations of condos and apartments around the One-North station on the MRT.

There are only four condos, as you can see.

The Rochester Residences is one of the most recent.

Even that launch was made in 2007 – 13 years ago.

What do you think about the housing supply?

What if, instead of what you think or me, what does government think?

It is interesting that even though the government knows about Normanton Park’s upcoming mega launch, and many other projects in West Texas, it has not yet published the information.

One-North Eden is still set to launch right after Normanton Park.

This is all the activity since the launch 13 years ago.

This is the government’s response in anticipation of increased demand?

Normanton Park Unique Factors

For a project to be successful in the long-term, it is important to have unique attributes that can’t easily be replicated.

Large Site Area

Normanton Park is located on nearly 685,000 square feet of land.

It is the largest new project on the market today in terms of sheer size at 702,162 square feet.

Other popular projects in the North-Eastern Region, such as Florence Residences or Riverfront Residences have around 1400 units and a site area less than 400,000 square feet.

Normanton Park is more than a statistic. It makes the most of its size by housing over 100 facilities that cover almost 80% of the site’s entire area.

A second site, which is also close to Normanton Parks’s beautiful facilities, is Parc Clematis.

A land plot measuring approximately. Parc Clematis shares many of the same project attributes as Normanton Park.

Normanton Park’s 2 and unique factors further differentiate the project.

The Views

The developer said that the layout of the project site was planned so that it could be used as a reference.

  • Elevate the development: Level 2 is available starting at approximately. 10 stories above the AYE slip road, and 18.8m above the ground.
  • Maximize distance to AYE: The closest block (45), is approximately. 105m from the AYE.
  • Maximum interior landscape: up to approximately. For the farthest blocks, 202m.
  • Minimise Site Coverage: Just 20.67% of total site area for blocks. Nearly 80% of the site area is used for facilities.

You can also maximize external panoramic views.

Normanton Park makes the most of Kent Ridge Park’s unique location, with mostly low-rise buildings, to give residents unobstructed views in almost all directions.

This trivia: Kent Ridge Hill Residences is the closest condo to Normanton Park. It is located on the other side of Kent Ridge Park.

It is still more than 700m away.

The Interlace is located approximately. Distance: 1.2km

Normanton Park is a unique oasis in the middle city because of its location and lush, generous landscaping.

Residents will also find 8 shops, including 1 F&B-approved restaurant, as an added bonus.

Future Potential

Are you familiar with the Greater Southern Waterfront (GSW).

It sounds almost like a broken record… how often this transformation is mentioned at each project launch in the West/South zone.

Despite its 6x size, no one can deny its potential impact.

Normanton Park also has hidden connectivity to the GSW if you pay attention.

It is possible to spot it.

Below are two maps: the first is the street directory and the second nd is the 2019 masterplan.

Which differences do you notice?

2 things

  1. This path links Normanton Park drivers through Kent Ridge Park, and could potentially lead to Pasir Panjang. Perhaps an underground tunnel?
  2. Extend Science Park Drive to the end of Kent Ridge Park, Hortpark and Alexandra Road.

It greatly improves Normanton Park’s connectivity to the Southern region of Singapore and, consequently, the Greater Southern Waterfront.

Pasir Panjang MRT Station would also be more accessible.

We can expect to complete the full circle extension by 2025, which will allow for faster access to areas like Marina Bay and Paya Lebar.

Normanton Park even created a future secondary entrance as part of its site design in order to capitalize on these road changes.

Talk about being prepared!

Normanton Park Price Analysis

The developer has provided indicative prices for the launch.

Or, as low as $16XX per square foot

It can be difficult to analyze the pricing of a project without making close comparisons.

These are the 3 aspects I chose to illustrate.

Vs Resale

The Interlace is a unique cascading design that consists of blocks stacked in varying directions. It can be found near the Alexandra Road exit.

It covers more than 800,000.

Despite this, 1,040 is almost twice as many units.

CapitaLand developed the project and it reached its TOP in 2013.

The Interlace units, like many other projects from that era have the following characteristics.

  • There are no 1-bedroom units. The smallest unit is 2 bedrooms, starting at 807 sqft
  • Some layouts do not have big balconies and some don’t even offer balconies at all
  • Bay windows, irregular shapes, and planter boxes

Below is a snapshot showing the most recent transactions at The Interlace in the past 6 months.

As you would expect for a condo this size and stature, there is a healthy transaction volume.

You may also notice that the psf is very low at around 1200-1300

Normanton Park is on the other side, and will be priced at 16xx psf. That’s a good 30%+ more than normal.

The Interlace’s larger units make them more expensive from a quantum perspective.

Buyers looking for smaller units should consider 1 br – 2 br units with a budget below 1.2m…

These units are expected to be the most sought-after at Normanton Park. However, there is no comparison with The Interlace… because you can’t buy anything in that project with the same budget.

Although they are two similar projects, Normanton Park & The Interlace offer completely different units at varying prices. It is almost impossible to compare the two projects.

Vs Premium Views

Remember how I said that Normanton Park’s unique feature is its excellent views?

The South has stunning sea views

City Views to the East, West, and North…

What are the current prices buyers will pay for these views?

Let’s take a look at some of the most recent launches.

These 3 developments represent some of the most popular RCR projects and command premium views.

The transaction details reveal that buyers are willing pay more than 2,000 dollars per square foot for unblocked views.

ButHey!

These three projects are in much better locations than Normanton Park. One Pearl Bank, Stirling Residences and Avenue South Residences are near MRT stations.

People would naturally be willing to pay more for these locations…

Let’s take a look at the closest competitor, just across Kent Ridge Park.

This low-rise, 5-storey high development has prices that average more than $1750 per square foot and go up to $1940 per square feet.

Consider the following comparisons to determine how much it is worth to get unblocked Normanton Park views.

Vs other District 5 launches

Clavon had the most successful first day of launch sales in just a few weeks.

Parc Clematis recently sold over 1,000 units.

The new supply is very low, especially for smaller units.

Normanton Park Yield Analysis – Rental & Yield

This section is crucial for investors who are looking to rent their units.

Although I did explore the demand and supply dynamics in this article, I didn’t include any rental data.

You can find more information here.

Let’s use the two newer projects as a guide: One-North Residences (2009) and The Rochester (2011).

We will only discuss the 1- and 2-bedroom units for ease of discussion.

1 Bedroom Rentals
2 Bedroom Rentals

You will notice a 3 rd project there: Commonwealth Towers

It is located right next to Queenstown MRT station. Buona Vista MRT station is 2 stops away, where The Rochester Residence and One-North Residence can be found.

To illustrate the impact of being near business hubs, in this case, the Greater One-North, I placed Commonwealth Towers.

Commonwealth Towers is located closer to central Singapore and the CBD but rents on average lower than the other 2 projects.

Surprising?

This breaks traditional thinking of relating closeness to central Singapore/traditional CBD (Raffles Place & Tanjong Pagar), with higher rents.

It’s unreasonable to expect Normanton Park rents to be as high at The Rochester Residences. The units there are larger, after all.

It wouldn’t be nearly as low as some people believe, despite not being near MRT.

Given the greater number of units and different facings, I believe we can expect a wider range of rents in Normanton Park.

For 1-bedroom units, I expect prices to be comparable to Commonwealth Towers pricing at lower ends of the spectrum, and rising to high $2k for premium facings.

Rents for 2-bedroom apartments can average 3.5k, but it is reasonable to anticipate higher rents.

Notice: The Interlace rents 2-bedroom apartments for an average of $3,800.

Normanton Park SWOT Analysis

These are mostly excellent points.

But what about the negatives?

Below is a SWOT that summarizes the Strengths and Opportunities of Normanton Park. I focus more on the Weaknesses and Threats.

Strengths

  1. It is located in the Greater One-North, a high-growth area.
  2. Condo supply is low in the area
  3. Large site area with resort-like amenities
  4. Unblocked views from almost all directions

Weaknesses

  1. There are no schools within 1km

You will find many other educational institutions near Tanglin Trust School. ACJC, INSEAD, ACJC and NUS.

Normanton Park is a good choice for parents who want to be close to a primary school within 1km.

  1. Developer Track Record

Kingsford is the developer of Normanton Park, if you haven’t yet.

This, as we mentioned at the beginning of the article was subject to a no-sale license’.

Is it worth worrying about and why did it happen?

It was caused by issues in the previous projects of the developer, such as Kingsford Hillview Peak.

This is why potential buyers are concerned about Normanton Park’s finished product.

This concern has been addressed by the developer, which I believe is not all bad.

This situation has its positive sides.

  1. There is no MRT in the vicinity

This is a major oversight for a project this large.

One marketing message might read: “In the middle of 3 MRT Stations!”

Also, it is not even close to any MRT.

Kent Ridge MRT is more than 15 minutes walk from the west and more than a kilometre away.

Opportunities

  1. As indicated in the Master Plan 2019, new road connections will be made
  2. The tech boom and many ‘Subject To Detailed Planning’ properties will continue to drive growth in the region.
  3. The Dover Knowledge District. The following is an extract from URA’s website. The Dover Knowledge District, which can be considered an extension of one-north. It can create synergies among the nearby academic and research institutions, business parks, and other businesses. It will provide vibrant, integrated spaces that can create new opportunities for learning and exciting jobs. This will also support Singapore’s long-term economic development.

Threats

  1. Lower Prices at Neighboring Stores

Near Normanton Park are vacant land parcels

To the east is low-rise landed housing.

The northeast, however, has future potential.

Although land sales tend to increase due to inflation, it is possible that future sales prices for these plots will be lower.

  1. Tech growth is not a given

Are we seeing the tech industry continue to grow?

Tech firms thrive in globalization and open economies, crossing borders and nations.

Covid-19 has sparked growth in the short-term because tech is one of the few escapes people have.

But in the long run, will this sustain?

With the increase in protectionism, data privacy and antitrust laws

One North is a business park that has a large component of tech companies. Any collapse in tech can be very detrimental to its prospects.

Is Normanton Park worth the investment? (Conclusion

Normanton Park is a great investment or home for enjoying resort-style amenities.

Connectivity is a great advantage with a car.

It is also connected to Kent Ridge Park, which would be a delight for nature lovers.

The pricing is also very competitive compared to other projects.

The TOP date is a huge bonus.

It is expected to launch on February 2, 2019, three years after its original date, which is much earlier than other launches.

But, there is a shadow over the developer’s image.

Buyers should not overlook this aspect when making a purchase.