Parc Esta is a 99 year leasehold condominium development located at 824 Sims Avenue in Singapore. It may well be more familiar to know the location to be directly opposite Eunos MRT Station. Parc Esta is sited on the former HUDC development, Eunosville, which was privatised in 2011, and was sold via a collective sale to MCL Land in 2017 at a price of $765 million, the second highest price achieved at that time, after Farrer Court. MCL Land has to top up an additional $194 million to the government to intensify the use of land, and to top up the lease of the land back to 99 years. The land size of this plot is 376,713 sqft and has a plot ratio of 2.8, and with a total purchase price of $959 million, the purchase price per square foot per plot ratio (psf ppr) is $909. With the typical estimated construction and marketing cost of about $500 psf to $550 psf, the estimated break-even price of Parc Esta Condo psf is about S$1,410 psf to $1460 psf, and therefore, analyst estimates that the average selling price will likely be about S$1,700 psf to $1750psf when it starts selling in the 2nd half of 2018.
Parc Esta site can be rebuilt into a 1,399 unit development with each unit averaging a size of about 70 sqm or 753 sqft. With the current launch of another two HUDC en bloc site development in Serangoon (Affinity At Serangoon) and Hougang (Riverfront Residences), it is highly likely that Parc Esta may come with similar unit mix as these two projects, and will have strata landed units as part of the offering.
Parc Esta should present a very good window of opportunity for both investors and buyers who are looking to buy it for their occupation. Parc Esta is located in such convenience, that Eunos MRT is just right opposite, and Paya Lebar MRT, being the stop that Paya Lebar Sub Regional Centre is located, is just one stop away. The Singapore government has been planning to decentralise the CBD to suburban area so as to decongest the city’s traffic and to bring jobs closer to homes, hence, building up Regional Centres around Singapore. The Regional Centres in Singapore is located in Tampines, Jurong East, Woodlands and Seletar area, and the Sub Regional Centres, being smaller in scale are located in Serangoon and Paya Lebar. Paya Lebar is very well connected, with MRT Station connecting from East West Line to Circle Line, and as a Sub Regional Centre, this area is home to several commercial buildings, which houses SMEs and MNCs.
Lendlease, a major developer in Australia and Singapore is constructing a mixed development besides Paya Lebar MRT Station, named Park Place @ PLQ, and consist 3 Grade A office towers, 3 residential towers and a shopping mall. The completion period of this development is still a few years away, but several big MNCs and government agencies have already committed to rent the office space, taking up several floors each. The residential units of Park Place Residences are selling at an average of $2000 psf, and that is the reason why Parc Esta will be a very attractive investment, as they are only 1 stop away from Paya Lebar, and yet, potentially much cheaper. People whom don’t enjoy the hustle and bustle of a CBD like area will also appreciate that they are far away from the crowd.