Normanton Park – Kingsford Huray having a no-sale licence for now.

Normanton Park Developer – Kingsford Huray has been awarded a “No-sale” licence for Normanton Park which was projected to launch mid of this year. Reason is due to deviation from some requirements under the Building Control Act and Regulations. So while Kingsford is sorting out this issue, there will be no sales and marketing activities temporary for now. However, feel free to find out more info about Normanton Park and subscribe with us, so we can keep you updated on the plan moving forward.

Below is the news featured in Business Times on 15th April – “Kingsford Huray gets no-sale licence for Normanton Park project”

Normanton Park (Former) - undergoing development

KINGSFORD Huray Development has been hit with a no-sale licence for its project at the former Normanton Park site, prohibiting it from selling units before the Temporary Occupation Permit (TOP) is obtained.

In June, Kingsford Huray was granted approval for a 1,882-unit project on the site, comprising 1,863 apartments and 19 strata terrace houses. But the Controller of Housing (COH) issued a no-sale licence for the project on Jan 15, “as the company had failed to meet the requirements for a sale licence”, said an Urban Redevelopment Authority (URA) spokesman in response to queries from The Business Times.

He said the Building and Construction Authority (BCA) had found that at the developer’s other project Kingsford Waterbay, some building works such as windows, barriers and common storey shelter “had deviated from requirements under the Building Control Act and Regulations”.

“Feedback received from buyers of Kingsford Hillview Peak, another project by the company, was also taken into consideration,” the spokesman added.

In December 2017, Kingsford Waterbay was issued with an order to stop building works. This was lifted only after rectification works were completed. Separately, in July 2017, Kingsford Huray was fined S$130,000 under the Workplace Safety and Health Act for repeated safety lapses at its Hillview Peak worksite.
SEE ALSO: No-sale licence issued to Normanton Park project

Developers with a no-sale licence can begin construction but cannot sell units off-plan without approval from the COH.

After TOP is obtained, the developer will still need to apply to the COH to convert its licence into a sale licence before units can be sold. A no-sale licence can also be converted before TOP is obtained, if the developer is able to satisfy the criteria to qualify for a sale licence.

In assessing any application for a Housing Developer’s Licence, the COH will consider various factors, including the developer’s track record, said the URA spokesman. “Where necessary, the COH may issue a licence with conditions to ensure that the interests of home buyers are duly protected.”

The no-sale licence for the Normanton Park project, publicly available on the URA’s website, includes conditions such as strict compliance with the Housing Developers (Control & Licensing) Act (Cap. 130) and the Housing Developers Rules.

Another condition is that none of the units may be sold without the COH’s prior approval in writing. Kingsford Huray must also obtain Quality Mark certificates for all units in the housing development, and do so before making any application to the Controller to sell them.

In general, such a requirement is “so that home buyers can be assured that their housing units are constructed and finished to a reasonable standard of quality”, said the spokesman.

Under the Normanton Park project’s no-sale licence, the COH must also be informed within 14 days of any changes to persons holding responsible positions in Kingsford Huray, and any changes to the particulars of the developer and/or the project, as set out in the licence.

In October 2017, Normanton Park was sold to Kingsford Huray for S$830.1 million, in one of Singapore’s biggest en bloc purchases at the time. This came with an estimated S$231.1 million additional payment to top up the lease to 99 years.

Also payable was a fee of about S$283.4 million to redevelop the site to a gross plot ratio of 2.1 based on the maximum permissible gross floor area of about 1.39 million square feet. This translated to a land price of about S$969 per square foot per plot ratio…

To read more information, please click here:

Good Comparable Development for One Normanton Park

What are the new developments near Normanton Park which will form a good comparable for buyers?

Most recent launch will be Kent Ridge Hill Residences by Oxley Holdings. A 548 unit, 99 year leasehold development on South Buona Vista Road, previews at average $1,700psf, as reported by 99.co on 18 October 2018.

Base on the estimated breakeven price from edge prop vs the launch price, it is in my opinion that developers are taking a very cautious approach in launching their development. Which will turn out to be advantages to the buyers in today’s market.

One Normanton Park comparison - Kent Ridge Hill Residences

On 11 November 2018, Edgeprop reported a total of 110 units out of 250 released were sold on the first day of launch by balloting. The average price achieved for the units sold was $1,714psf.

Similarly, to Normanton Park, both developments enjoy the large greenery offered by Kent Hill Park, with canopy walk linking to Hort Park. Home-owners or Tenants who enjoy the nature will prefer such a development.

One Normanton Park comparison - Kent Ridge Hill Residences - enjoys large Greenery

As we study deeper into the locations of both developments, we will notice Normanton Park is located right beside Science Park. This may potentially form the immediate pool of Tenants for investors of Normanton Park. Just a short drive away, will be One-North and National University of Singapore / National University of Hospital via Ayer Rajah Expressway. These may form the next potential pool of Tenants for Normanton Park.

One Normanton Park - Some key amenities in the surrounding

Normanton Park will be very near to Tanglin Trust School, an international school for children from age 3 to 18. Been close to an international school will naturally form part of the considerations for expats coming to Singapore with their family.

One Normanton Park - with Tanglin Trust School

 

Estimated to launch in 1st half of 2019, we should expect a high level of interest for this development. Register your interest if you are keen to explore this brand new development in Normanton Park.

Pricing Of Past Developments By Developer

Take a quick look at how the developer priced their other developments. Let’s take a look at the recent TOP project, Kingsford Waterbay.

One Normanton Park Pricing Comparision

Above information is extracted from Edgeprop. Kingsford Waterbay consist of 2 parcels from Government Land Sales (GLS). Sold in December 2013, the estimated breakeven price for both plots works out to be $937psf.

Let’s now take a look at how this new launch was priced from the beginning till the last unit sold.

One Normanton Park Developer Kingsford's Pricing Trend

Kingsford Waterbay was launched in early 2015, during the Chinese New Year period. From the chart above, we can see that developer launched at an average of $1100psf. Taking reference from the estimated break even psf of $937, developer factor in a 10-20% increase from the breakeven price. We can also notice the average pricing of the development increases over time since launch till the last unit sold.

The average pricing of $1100psf at the launch was an attractive pricing. Developer did not price 30 or 40% above the estimated breakeven price but a modest $1100psf. This could also due to the introduction of Total Debt Servicing Ratio in 2013, where we observed Singapore property market stabilizing.

Interesting, we see the average pricing of the development increased in 2016, even when the overall Singapore property price index stabilizing (Singapore property price index started increasing some time from 2017 onwards). Although price increased, sales continued and in 2018, all units were sold at an even higher average psf.

Base on Kingsford Waterbay example, buyers who bought during launch benefited the most. Although in 2013, with the introduction of Total Debt Servicing Ratio, many buyers were worried and concerned whether prices will dip. In my opinion, developers are also aware of the market conditions and they will want to price it realistically and clear off their inventory. When opportunity presents itself, developers will also increase their price to have a gain bigger profit.

What are the market sentiments in coming 2019? Will Normanton Park be a repeat of Kingsford Waterbay? Is it better to buy during launch, or wait till much later to buy? Drop me a note if you would like to discuss more.