Normanton Park Singapore is a name you may have heard if you are looking for a home. It’s possible that you are wondering why this name sounds familiar. Let us refresh your memory: In 2017, Normanton Park was sold to Kingsford Huray Development for $830.1 Million.
This was before the en bloc frenzy, when developers snapped up land to redevelop. It was also before the 2018 cooling steps that slapped developers a higher Additional Buyer’s Stamp Duty.
Fast forward to 2021. Kingsford launched Normanton Park in January. The project quickly made headlines because it sold 600 units on the launch day. That’s nearly one-third of the 1,862 units within the development.
It is also interesting to note that Normanton Park has a higher than normal percentage of agents purchasing units for their clients. Kingsford states that over 10% of units sold at launch was purchased by agents marketing the project.
Property agents don’t usually buy the projects they’re marketing
This is a fascinating phenomenon because it is very rare for property agents that they buy units in the properties they are selling. It has nothing to do wtih how sincere they are as agents, but it is a matter of practicality.
Imagine an agent selling for 10-15 or 20 projects per year. It is impossible for them buy multiple homes in the same development. Although they may be able to identify several projects that are “good deals”, not many people have the financial resources to purchase more than one. Private property in Singapore is extremely expensive. There are also 1. The ABSD, which makes it difficult to own multiple properties simultaneously, and 2. Seller’s Stamp Duty (SSD), that prevents investors “flipping” properties in the short-term.
A project must stand out to property agents in order for them to make the decision to sell. In Normanton Park’s instance, it was more than just a few agents. It was 60!
What is it that Normanton Park is so unique? We spoke with three agents who own or plan to purchase a unit in Normanton Park.
Sergius Seah, Associate Group Director, Propnex Realty
Sergius is intending to buy a two-bedroom unit for investment. He is currently selling his investment property and plans to rent his Normanton Park unit for income.
Ken Low, Managing Partner, Singapore Realtors Inc (SRI)
Ken also bought a unit at Normanton Park for investment. Instead of looking for passive income like Sergius’, Ken wants to create capital. To make a profit on the properties after three to four year.
Valerie Lee, Associate Division Director at ERA Realty Network
Valerie bought a two-bedroom unit on a high floor and with a sea view. It was purchased for investment, but she is open to leaving it to her son.
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. These are the top reasons Normanton Park is an excellent investment property, based on their analysis and research:
Normanton Park Projects Are Selling for Much More
The price is one of the most important things property investors consider. According to agents Normanton Park’s asking price of $1750 per square foot is very affordable.
Ken says that other developments in the vicinity, even further from the city, have already transacted at $19XX per square foot or higher. 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.
Normanton Park’s Value is likely to appreciate due to the transformations that have taken place in the area.
There is potential for capital appreciation due to the low prices. 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. These developments are encouraging. Ken says that the government doesn’t spend money on infrastructure.
As the transformation continues over the next few decades, Normanton Park’s market value is expected to rise significantly.
Normanton Park, a MNC-Hugged Park, Expects High Rentability
You have two options when it comes to investing in property. You can either rent it out or sell it. Agents not only deemed Normanton Park to have great potential for capital appreciation (as mentioned above), but also had high confidence in its future rentalability.
“I believe Normanton Park’s rentability is very good,” says Sergius. Sergius says that there are many people who work in the area, but few housing options.
With so many commercial hubs and so few condos, the area has a large pool of potential tenants that investors could tap into.
Normanton Park is a wonderful place to live in.
We’ve already talked about how Normanton Park could make a great investment. What about Normanton Park being a home? That’s what residential properties are for, to be lived in.
Although the launch-day sales figures speak for themselves, all three agents agreed that Normanton Park is a great residential project. Because at the end, the appeal of the property to buyers and tenants will determine whether you rent or sell it.
With around 20 new launch condos expected this year, what really sets Normanton Park apart? These are the key features that Valerie, Sergius, and Ken have highlighted.
1. Excellent city-fringe location
Normanton Park is located in District 5, in the Rest of Central Region (RCR). It is located on the city’s fringe and has excellent connectivity to the city. It is located 1.2km from Kent Ridge MRT, and close to the Ayer Rayah Expressway.
2. Beautiful Design and Unique Amazon River Theme
Normanton Park’s facade is another distinctive feature. The largest land parcel in the development, but with only about 20% of development footprint. Rest of the land will be used to landscape and other facilities.
3. Beautiful Views and Good Layouts
Normanton Park’s design required a lot of thought. Because the buildings face the greenery, they are designed in a U-shape so that almost all units can have unblocked views. Normanton Park’s second lowest floor (2F), will be 18.8m high above the facility deck. It can also be elevated to the level of a seventh-floor unit. Rarely, some units have both sea and park views.
Finding the Perfect Balance With Normanton Park
You can see that Kingsford has found the perfect balance between Normanton Park and Kingsford – it is a beautiful place to live and also offers great investment opportunities. Agents shared that they purchased Normanton Park as an investment property, but they are also happy to live there if they don’t succeed.
If you’re interested in buying a home there, you can find out more about the balance units left in Normanton Park here.