This is my review on Parc Komo, a freehold development located at Jalan Mariam (Former Changi Gardens). Developer prices will be released shortly, feel free to drop us a message and we will update you when it does. This project will possibly be the lowest priced freehold new launch in 2019.
Parc Komo – freehold 276-unit of residential and mixed development located at the North Changi Road and Jalan Mariam. Parc Komo will most likely be the most affordable upcoming freehold launch in 2019. This new project is the result of the collective sale of Changi Gardens at $248.8 million or $888 per sq ft per plot ratio (psf ppr) for the 200,093 sq ft site. It is bought over by Chip Eng Seng Corporation (CES) and handed over to CEL Development which is CES’s property development arm.
Location and Surroundings:
Parc Komo is far from amenities such as MRT, shopping malls, markets, schools etc. However, Parc Komo is a mixed development which means there are commercial units for retail and services. I think this is what sets Parc Komo apart from other neighbouring condominiums.
“Is it hard to find tenants so far from City?”
At first glance, I imagine it would be difficult as most tenants will want the convenience as they do not own their own transport. On the contrary, rental yield is pretty decent for developments around that area at an average of 3.4% rental yield. I believe the factors for the rentability will come from the Changi industrial parks and Changi business parks located close by. I also think that because of the lower than usual property prices around the area, above average rental yield is effortlessly achievable.
The Jewel Changi Airport:
Set to open in the first half of 2019, The Jewel at Changi Airport will be an iconic destination and showcase for the world to see the very moment tourist land in Singapore. Jewel’s unique mix of lush nature and urban energy is coalescing amidst Singapore’s largest air-conditioned indoor garden and also features The Rain Vortex which will be the world’s biggest indoor waterfall.
“This is definitely something I personally am looking forward to experiencing.”
Parc Komo is located about 5 minutes drive away from Singapore’s latest main attraction, The Jewel at Changi. Experts have said that Singaporeans could expect about 1,000 new jobs with The Jewel which means more demand for rental.
Pricing and comparisons:
Based on the land rate($888 psf), the estimated break-even price for Parc Komo would be about $1,350 psf to $1,400 psf. For developers to sell at a profit I can imagine the asking price to be around at least $1,600 psf.
In comparison with newer, 99-year leasehold resale condominiums (completed after 2015) along Flora Drive, buyers would have to pay about a 20% premium based on asking price for The Jovell for a freehold tenure development.
“Is it a must to get freehold instead of leasehold ?”
As a general rule of thumb, the value of freehold vs 99-years has little difference up till 78th-year lease remaining mark. In other words, for the first 21 years of a 99-year leasehold property, prices will not have any significant difference compared with a freehold property with similar attributes.
It is only after the 21 years then you will notice the value start to depreciate compared to freehold. This is why generally, 99-years leasehold projects have higher rental yields as freehold projects cost 15-20% more. I believe the fundamentals of property investment such as the location, price and timing are more crucial than the tenure. In this instance, Parc Komo is more unique as it is freehold, and also solves the problem of the lack of convenience most other condominiums around the area face, as there is a block of retail shops within Parc Komo itself. This definitely makes it worthwhile to pay for freehold premium for Parc Komo.
“Freehold is great for legacy planning, 99-years leasehold is more cost effective”
Developer’s Track Record:
CEL development – A wholly owned subsidiary of Chip Eng Seng Corporation Ltd (CES), a public listed company in Singapore since 1999. Spearheading the Group’s portfolio in property development and investments, CEL has over the years established herself as one of the industry’s fastest rising name. With development projects and investment interests in Singapore, Australia and Vietnam, CEL Development Pte Ltd has established impressive growth in recent years. Some of their more reputable new projects include Grandeur Park Residences, Fulcrum, Alexandra Central and Parc Colonial
In my opinion, Parc Komo is more likely a home suitable for own stay than investment as it is quite affordable for a freehold project. I think this project suits buyers who frequently travel and needs to stay close to the airport and rentability is quite decent because of the surrounding business parks. The best selling point for this project I would say would be that it is a mixed development which is rare. I consider it to have a lot more long term potential because there is no MRT station yet, so when eventually train station is proposed way in the future, prices will be more inclined towards rising.
Value for money: ⭐ ⭐ ⭐ 3/5
Future appreciation:⭐ ⭐ ⭐⭐4/5
*Floor plans and all illustrations are subject to developer’s confirmation and updates.
If you would like to have the Parc Komo brochure, floor plans or pricing, do inform us.
This review will be undergoing updates stay tuned for the latest updates!