The Serangoon planning area – comprising Serangoon Central, Lorong Chuan, Upper Paya Lebar and other subzones – has long been a popular choice for private property buyers who are drawn to its convenient transport links, wide range of neighbourhood amenities, reputable schools and road connectivity to the rest of Singapore. 

These attributes make the upcoming mega-development, Chuan Park by Kingsford Group, particularly appealing. As the first new condominium launch in the wider Serangoon area since 2019 and the first in the Lorong Chuan neighbourhood in 14 years, it is poised to generate significant interest among homebuyers. 

Mr Ismail Gafoor, CEO of real estate group PropNex Realty, noted that the vast majority of units at previous neighbouring launches have already been sold. “This suggests a potential pent-up demand for new private housing in the area,” he said. 

Mr Marcus Chu, CEO of real estate group ERA Singapore, added that Serangoon is a well-loved estate with established amenities, making it attractive for those who have lived there since childhood to continue living in a familiar neighbourhood where they have deep-rooted connections. “Nestled within the ‘golden triangle’ of three mature HDB estates – Bishan, Toa Payoh and Serangoon – Chuan Park might attract demand from residents looking to upgrade their properties,” he said. 

A GROWING DEMAND FOR NEW LAUNCHES

Despite a recent slowdown in the private home market, Mr Gafoor believes that private property remains a desirable investment in Singapore. He attributed the quarter-on-quarter deceleration in private home prices – from 1.4 per cent to 0.9 per cent growth, as reported by the Urban Redevelopment Authority’s (URA) Property Price Index – to fewer new launches and limited new home sales transactions.

However, the outlook is far from bleak. An increasing number of younger Singaporeans below 35 have been purchasing private property in recent years, citing investment potential as a key motivation. 

New launches have also garnered significant attention among potential buyers in the past year. One factor could be the greater flexibility in unit sizes, with many buyers seeking smaller homes, such as two-bedroom units, which are often in short supply in the primary market, explained Mr Gafoor. 

With the lowering of interest rates boosting buyer confidence, property market observers have highlighted Chuan Park as a project that is set to draw strong interest, thanks to its competitive pricing and strategic location in District 19. 

Citing URA Realis caveat data, Mr Gafoor noted that District 19 was the top-transacting district for non-landed resale private homes (excluding executive condominiums) from 2020 to 2023, and continues to lead in resale volume as of August 2024. 

THE RENTAL POTENTIAL OF A CITY-FRINGE LOCATION 

The Singapore Government’s ongoing efforts to attract multinational corporations and talent to drive growth in emerging sectors like technology are expected to positively impact the housing rental market, according to Mr Gafoor. He predicted greater demand from expatriates and their families, as well as international students, continuing a trend seen in recent years. 

“According to the URA Rental Index for private residential properties, rentals have risen by around 50 per cent from 2017 to the second quarter of 2024,” said Mr Gafoor. “Many investors have benefited from this strong leasing demand, which provides a recurring income stream.” 

Factors that investors should consider when purchasing a property include accessibility to the MRT network, commercial offerings, schools – including international schools – and proximity to employment hubs, shared Mr Gafoor. 

As a condominium development in District 19, which comprises Hougang, Punggol and Sengkang, Chuan Park is expected to attract interest from potential tenants working at the new commercial and industrial hubs in Singapore’s northeast region.

These hubs include the upcoming Punggol Digital District, which is slated for completion in 2026, the 11,000 sqm expansion of Seletar Aerospace Park, and in the longer term, the redevelopment of the Paya Lebar Airbase beginning in 2030.

“By bringing jobs closer to homes, these employment nodes could bolster demand for residential properties and the home leasing market,” shared Mr Gafoor. Citing URA Realis data and PropNex Realty’s research, he noted that in the first seven months of this year, District 19 ranked among the top five districts with the highest number of rental contracts for non-landed private homes, excluding executive condominiums.

Chuan Park’s location, proximity to schools, doorstep access to the MRT system and connectivity to key employment hubs like Tai Seng, Paya Lebar and one-north make it a compelling choice for buyers looking to live or invest in District 19.

“Considering these factors, we believe homes in the Lorong Chuan area will appeal to both investors and those buying for personal residence,” said Mr Gafoor.