5 reasons why the upcoming 2019 Punggol EC Piermont Grand on Sumang Walk will be another sell-out

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Sumang Link EC is near the Punggol Waterway
Sumang Link EC is near the Punggol Waterway

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Piermont Grand EC details

Sumang Link EC Land Parcel details
Sumang Link EC Land Parcel details

The top bid of S$509.37 million for Piermont Grand (Sumang Walk EC) site was won by City Development (CDL) and TID Residential. This works out to a record S$583 per square foot per plot ratio, which translates to a selling price of above S$1,000 per square foot.

Launching in 2019, it is likely to be the only executive condominium (EC) to be launching in 2019. We explain the 5 reasons why it will be another sell-out like Rivercove Residences, which was fully sold out in a mere 5 months after its launch in March 2018.

Project namePiermont Grand
DeveloperCity Development (CDL) and TID Residential
AddressSumang Walk
District 19D19
Tenure99 year leasehold
TOP2022 – 2023
Total number of units820
Unit mix3 – 5 bedrooms (sizes to be confirmed)
Facilities13 blocks in total

 

Full fledged gymnasium

50 lap pool and children’s pool

BBQ pits and gourmet pavilion for residents

In this article, let’s analyse the 5 reasons why our analysts at PropertyInvestSG believes it will be another sell out.

1) High demand but limited supply of executive condominium units

As of April 2019, there are no available EC units in the market except for bounced out units. These units are “returned” to the developer should there be a disqualification in family nucleus eg divorce or annulment of marriage that happens.

Below are the latest status as of April 2019 for the ECs launched since 2013.

MOP refers to Minimum Occupancy Period which residents have to fulfil after collecting their keys before they are allowed to sell their units in the open market, except for special cases that have been granted pre-approval by HDB.

NameDistrictAddressTOP dateNumber of unitsStatus
PrivePunggolPunggol Field17-Jul-13680Just MOP
Esparina ResidencesWoodlandsBuangkok Drive / Compassvale Bow11-Sep-13573Just MOP
The CanopyYishunYishun Avenue 1114-Jan-14406MOP up in 2019
Austville ResidencesSengkangSengkang East Avenue / Buangkok Drive22-Apr-14540MOP up in 2019
BelysaPasir RisPasir Ris Drive 1 / Elias Road28-May-14315MOP up in 2019
RiverParc ResidencePunggolPunggol Drive / Punggol East19-Jun-14504MOP up in 2019
Arc @TampinesTampinesTampines Avenue 85-Aug-14574MOP up in 2019
Blossom ResidencesBukit PanjangSegar Road5 Sep 2014602MOP up in 2019
WatercoloursPasir RisPasir Ris Drive 3 / Pasir Ris Link31-Dec-14416MOP up in 2019
The Tampines TrilliantTampinesTampines Central 76-Feb-15670MOP up in 2020
The RainforestChoa Chu KangChoa Chu Kang Drive6-Mar-15466MOP up in 2020
Twin WaterfallsPunggolPunggol Way / Punggol Field2-Jun-15728MOP up in 2020
One CanberraYishunYishun Avenue 7 / Canberra Drive19-Sep-15665MOP up in 2020
Heron BayHougangUpper Serangoon View /7-Oct-15394MOP up in 2020
Upper Serangoon Road 
WaterwoodsPunggolPunggol Field Walk / Punggol East1-Dec-15373MOP up in 2020
WaterbayPunggolPunggol Central / Edgefield Plains27-Jan-16383MOP up in 2021
[email protected]TampinesTampines Central 7 / Tampines3-Feb-16514MOP up in 2021
Avenue 7 / Tampines Avenue 9 
Twin FountainsWoodlandsWoodlands Avenue 6 /14-Mar-16418MOP up in 2021
Woodlands Drive 16 
The TopiarySengkangFernvale Lane22-Mar-16700MOP up in 2021
ForestvilleWoodlandsWoodlands Avenue 5 / Woodlands Drive 161-Apr-16653MOP up in 2021
Lush AcresSengkangSengkang West Way / Fernvale Link30-Jun-16380MOP up in 2021
SkyPark ResidencesSembawangSembawang Crescent / Sembawang Drive10-Aug-16502MOP up in 2021
EcopolitanPunggolPunggol Way / Punggol Walk29-Aug-16512MOP up in 2021
Sea HorizonPasir RisPasir Ris Drive 3 / Pasir Ris Rise7-Oct-16495MOP up in 2021
The AmorePunggolPunggol Central / Edgedale Plains28-Nov-16378MOP up in 2021
Lake LifeJurong WestYuan Ching Road / Tao Ching Road30-Dec-16546MOP up in 2021
BellewoodsWoodlandsWoodlands Avenue 5 / Woodlands Avenue 616-Mar-17561MOP up in 2022
The ValesSengkangAnchorvale Crescent2-May-17517MOP up in 2022
BellewatersSengkangAnchorvale Crescent3-May-17656MOP up in 2022
The TerracePunggolPunggol Drive / Edgedale Plains25-May-17747Just collected keys
Signature at YishunYishunYishun Street 5114-Jul-17525Just collected keys
Westwood ResidencesJurong WestWestwood Avenue24-Oct-17480Just collected keys
The BrownstoneSembawangCanberra Drive30-Oct-17638Just collected keys
The CriterionYishunYishun Street 5126-Feb-18525Just collected keys
WandervaleChoa Chu KangChoa Chu Kang Drive14-Mar-18534Just collected keys
Parc LifeSembawangSembawang Avenue29-Mar-18628Just collected keys
Sol AcresChoa Chu KangChoa Chu Kang Grove12 Mar 2018 *1237Just collected keys
26 Apr 2018 *Just collected keys
The VisionaireSembawangSembawang Road / Canberra Link14-Jun-18632Collecting keys soon
Treasure CrestSengkangAnchorvale Crescent14-Sep-18504Collecting keys soon
NorthwaveWoodlandsWoodlands Avenue 12Feb-19358Fully sold

 

Under construction

iNz ResidenceChoa Chu KangChoa Chu Kang Avenue 5Aug-19497Fully sold

 

Under construction

Hundred Palms ResidencesHougangYio Chu Kang Road2020 Fully sold

 

Under construction

Rivercove ResidencesSengkangAnchorvale Lane2020628Fully sold

 

Under construction

Piermont Grand ECPunggolSumang Walk2022 to 2023 Launching in 2019

From the list above, we see there the government had slowed down sales sites for ECs since 2015 and in the recent years.

It had always been an average of 6-7 ECs launched every year, except in 2012 where a bumper crop of 11 ECs were released for sale by developers.

With the increasing affluence of young Singaporean couples and families, the income ceiling cap for an EC was raised from S$12,000 to S$14,000 a month. An EC is hence a viable choice for young families who wish to live in a condominium.

2) The big boom in District 19

Price trend in D19
Price trend in D19

District 19 encompasses Punggol, Sengkang, Serangoon Gardens and Hougang.

The price trend in D19 has been rising since 2011. In October 2010 it was transacting around S$822 psf and in September 2018 it has risen to an average of S$1,268 psf. That’s a 55% rise over the past 8 years, translating to an average rise of 6.7% annually.

Recent transactions in D19
Recent transactions in D19

Rivercove Residences and Treasure Crest are the only 2 ECs in Punggol in the above sales chart and as we see above, some units were transacted above 1,000 psf.

Over on the secondary market, we see projects near the Sumang Link EC transacting between S$945 and S$1,192 psf.

Is Piermont Grand EC on Sumang Walk estimated selling price of $1,000 psf still competitive? Compared with the new launches of private condos in D19, naturally S$1,000 psf appears competitive.

When ranked next to resale condos in the secondary market, we see that most of the resale condos in the area have an average median price of S$1,100 to S$1,400psf, except for Prive and The Quartz.

3) Government masterplan of Punggol

Developments in Punggol district
Developments in Punggol district

There has been extensive plans for the next chapter of Punggol’s development in the next five to 15 years and beyond which shall include seafront public housing, an expanded town centre, more green parks and corridors, as well as a pedestrian-friendly heritage trail.

The Punggol Digital District has also been identified as a key element in the government’s plan in Singapore to build a Smart Nation.

In the near term, the government is expecting to relocate cyber security, data analytics, artificial intelligence firms and other digital technologies and key growth industries to Punggol. This is expected to create another 28,000 jobs in the region.

4) And who can resist waterfront living?

Sumang Link EC site view
Sumang Link EC site view

Who can resist affordable waterfront living? Imagine a nice stroll along the serene Punggol Waterway in the evenings or bringing your family to cycle or have a picnic on the weekend.

5) Huge upside in ECs after the 5 year mark

Recent transactions in D19
Recent transactions in D19

For buyers who want to know the capital appreciation of an EC, Prive is an excellent recent example. It is an EC launched in 2010, and TOP in 2013. It had recently attained its minimum 5 year occupancy fulfillment (MOP), which means it can now be sold in the open market to Singaporeans and Singapore Permanent Residents (SPRs).

For perspective, it was previously sold for $660 per sq ft to $690 per sq ft (psf) in 2010 when it was launched.

Assuming the median price at launch for Prive to be S$675 psf, this is an estimated S$270 psf gain for an average unit sold, hence translating to a 40% gain for the first buyer. This means a profit of S$270,000 for the first owner of Prive for an average 3 bedder 1,000 square feet unit!

Contact Us!

Since keen on finding more about your eligibility for an executive condo? As well as the S$30,000 CPF grant? Or would you like to be the first to be updated on Piermont Grand (Sumang Walk EC)? Sign up below for more information!

Do you own a HDB (required)
Yes, I own a HDBNo, I don't own a HDB

Have you met your minimum occupation period (MOP) or when is it? (required)
Yes, past my HDB MOP20192020202120222023My MOP is after 2023N.A.

My budget is (required)
Below S$800kS$800k-1mS$1m-1.5mMore than S$1.5m

My combined monthly household income is (required)
S$2-3kS$3-4kS$4-5kS$5-6kS$6-7kS$7-8kS$8-9kS$9-10kS$10-11kS$11-12kS$12-13kS$13-14kMore than S$14k

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Sumang Walk ECCanberra Link ECAnchorvale Crescent ECTampines Avenue 10 EC

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