CDL banks on undersupply of private condos in Woodlands with the launch of Norwood Grand

The upcoming Norwood Grand by City Developments (CDL) is the first private condo to be launched in Woodlands since Parc Rosewood in 2012, says Christine Sun, chief researcher and strategist at OrangeTee Group. Located on Champions Way, off Woodlands Avenue 1, the 348-unit private condo development site was purchased in a government land sale (GLS) tender in September 2023 for about $294.9 million ($904 psf per plot ratio). CDL emerged at the top of six bidders to win the 99-year leasehold site. Nearby at Woodlands Drive 17 is an executive condo (EC) site that could yield 435 units. It will be made available for sale on the Reserve List later this month. “Other than the parcel of land slated for EC development, there is no supply of land for private residential development in the foreseeable future,” says Mark Yip, CEO of Huttons Asia. Read also: CDL previews Norwood Grand at prices starting from $988,000 Advertisement Advertisement One MRT stop away at Woodlands Central is a white site at Woodlands Avenue 2. It is on the URA’s Reserve List and is available for sale by application. The white site can be developed into a mixed-use development with 440 housing units and 78,000 sqm (839,592 sq ft) of commercial space. It has yet to be triggered for sale. As of the last government land sales (GLS) programme for 2H2024, no other land sites in Woodlands are available for sale, adds OrangeTee’s Sun.

Underlying upgrader demand

Developed in the 1970s, Woodlands is a predominantly public housing and industrial estate. Based on data from the Department of Statistics Singapore, Woodlands has 72,330 HDB flats as of June, compared to 6,270 private condos and apartments. Therefore, the ratio of HDB households to private condos is 11.5 to one. Comparatively, in Tampines in the East, there are 82,580 HDB flats and 14,880 private homes, which translates to 5.5 HDB households for every private condo. Meanwhile, Bukit Merah has 54,590 HDB flats and 13,340 private homes or four HDB households to every private condo. “These comparisons show that there’s an undersupply of private housing in Woodlands”, reasons Sun of OrangeTee. Meanwhile, according to Sun, 4,709 HDB flats in Woodlands reached their Minimum Occupation Period (MOP) between 2022 and 2023. As a result, many HDB upgraders will be keen to upgrade to a private home in Woodlands after fulfilling the five-year MOP, she adds. Read also: CDL opens new annex at Singapore Sustainability Academy at City Square Mall's roof terrace Advertisement Advertisement HDB resale prices have also surged 43.8% over the past four years from 3Q2020 to 3Q2024, based on the latest flash estimates. “The higher resale prices will give an uplift to those who want to upgrade to a private condo lifestyle in the North Region,” says Ismail Gafoor, CEO of PropNex. According to Gafoor, private resale housing transactions in Woodlands were higher over the past three years — from 2021 to 2023 — compared to previous years. In 2021, the number of private residential resales was 206 units, followed by another 122 in 2022 and 111 in 2023. “It shows that resale transactions in Woodlands have been active,” he observes. These figures bode well for Norwood Grand as they spell pent-up demand for private housing in Woodlands due to the lack of new private condo launches for more than a decade, points out Gafoor. He expects demand to come from both first-time homebuyers and upgraders currently residing in Woodlands.

Starting prices below $2,000 psf

Norwood Grand’s preview starts on Oct 4, with its launch scheduled for Oct 15. The 348 units in the private condo are spread across four 11-storey blocks on a 99-year leasehold, 155,351 sq ft site. Units are a mix of one-bedroom-plus-study to four-bedroom premium-plus-study, with sizes ranging from 495 sq ft to 1,335 sq ft. Prices for a one-bedroom plus study start from $988,000 ($1,996 psf), while two-bedroom units from 624 sq ft are priced from $1.238 million ($1,984 psf). Three-bedroom deluxe units of 883 sq ft are priced from $1.698 million ($1,923 psf), while four-bedroom deluxe plus study of 1,173 sq ft are priced from $2.238 million ($1,908 psf). “The quantum prices are at a sweet spot for both owner-occupiers and investors,” says PropNex’s Gafoor. “Generally, the prices of new project launches in the OCR [Outside Central Region] have been above $2,000 psf. So Norwood Grand’s pricing at below $2,000 psf could draw some buyers’ interest during the preview.” Read also: CDL offers a portfolio of 11 strata shops at The Venue Shoppes for $40.77 mil Advertisement Advertisement

Investors and owner-occupiers

One- and two-bedroom units comprise 47% of the total units at Norwood Grand, with three- and four-bedroom units comprising the remaining 53%. The units are designed to appeal to investors and owner-occupiers, says Marcus Chu, CEO of ERA Singapore. Chu observes that the layout of the units maximises efficiency despite their compact sizes, with the majority provided with a dedicated study area and full kitchen. Hence, even the two-bedroom units of 624 sq ft, which come with two bathrooms (one en suite), are ideal for small families. Three-bedroom units at 872 sq ft to 883 sq ft are ideal for households with four people, while four-bedroom units, which start from 1,173 sq ft, are comfortable for families of four or more, according to Chu. Some of the three-bedroom units have kitchens that can be enclosed, with a window in both the wet and dry kitchen for natural ventilation, adds Huttons’ Yip. With the different layouts, the three-bedroom units can cater to different lifestyle needs. The study area of the four-bedroom units is designed with the flexibility for other uses, he notes. Norwood Grand will have an early childhood education centre within its premises. It is also within 1km of several primary schools, such as Innova Primary School, Si Ling Primary School, Woodgrove Primary School and Woodlands Ring Primary School. Its proximity to primary schools will enhance its appeal to young couples and families with young children, notes PropNex’s Gafoor. Several secondary and tertiary level schools are also nearby, such as Christ Church Secondary School, Singapore Sports School, Republic Polytechnic, and the future Yishun Innova Junior College. The Singapore American School has been in Woodlands since 1996. The Singapore Sports School is slated to move to Kallang, but no firm date has been set. MRT and RTS Link Besides being close to schools, Norwood Grand is a five-minute walk from the Woodlands South MRT Station on the Thomson-East Coast Line (TEL). It is just one stop to the Woodlands Integrated Transport Hub with the MRT Interchange Station (for the TEL and North-South Lines) and bus interchange. Woodlands Integrated Transport Hub sits in the heart of Woodlands Regional Centre. It is linked to the Causeway Point shopping mall and the Woods Square integrated commercial development with offices, retail and a childcare centre. It is also next to Woodlands Regional Library. Woodlands South Station is just two MRT stops from Woodlands North Station, which has direct access to the upcoming Rapid Transit System (RTS) Link with a light rail transit (LRT) shuttle service to Bukit Chagar Station in Johor Bahru (JB), Malaysia. The RTS Link, a 4km light rail, is expected to facilitate the movement of 10,000 people daily and ease traffic congestion at the Causeway, one of the busiest land crossings globally, says HSBC in its Sept 30 report. Investors seeking a first-mover advantage in the transformation of Woodlands may consider Norwood Grand, given its location and proximity to the RTS, notes Huttons’ Yip.

‘Biggest transformation in north Singapore’

“The Woodlands Regional Centre is likely to see the biggest transformation in the north region of Singapore,” Yip adds. “Different parts of the plans for Woodlands are taking shape, from the completion of Woodlands Health Campus in 2024 to the finalisation of the Johor-Singapore SEZ [Special Economic Zone] by end-2024 and the completion of the RTS in 2027.” Woodlands Regional Centre will be the main hub for the Northern Agri-Tech and Food Corridor, says OrangeTee’s Sun. It will integrate the upcoming Agri-Food Innovation Park with other components, including farms, Republic Polytechnic, and Senoko Food Zone. “Woodlands Regional Centre will also introduce new spaces for business, industry, research and development, and learning and innovation on over 100ha of developable land,” continues Sun. “Infrastructure is also being developed to support the growth of Woodlands, such as the TEL, the North-South Corridor, and the RTS link between JB and Singapore.”

Proximity to JB

The Johor-Singapore SEZ or JS-SEZ is expected to improve the overall business ecosystem and the movement of resources to benefit both Malaysia and Singapore, according to the HSBC report. While the collaboration is still in its early stages, incentives for those wanting to conduct business in the JS-SEZ include a one-stop business investment centre to facilitate the application process and special tax arrangements for foreign investors, passport-free clearance, and a digitised cargo clearance process. “If the economic zone succeeds, it could experience fast expansion, much like Shenzhen in mainland China, which in just 40 years went from being a small town with a population of roughly 300,000 to a global high-tech metropolis with over 17 million residents,” says the HSBC report. OrangeTee’s Sun considers Norwood Grand “particularly appealing” to investors hoping to lease their units to tenants working or studying in JB. “The upcoming RTS Link is expected to significantly improve travel convenience for Singaporeans, thereby increasing the property’s attractiveness,” she says. “Malaysians who may wish to send their children to study in Singapore will find it convenient for the family to travel back to Malaysia via the RTS over the weekends.” With the improved connectivity via the RTS, there is potential for an influx of Malaysian workers commuting to Singapore, which could lead to the transformation of Woodlands into a vibrant regional centre and a burgeoning business district, which will benefit property owners in Woodlands, notes Sun. “By living in Norwood Grand, residents can also enjoy the safety of Singapore and a lower cost of living by crossing the causeway for groceries and other necessities,” she adds. Norwood Grand is strategically located near this future hub, says CDL. “As an area poised for rapid growth, Woodlands is transforming into a dynamic hub with new infrastructure and excellent connectivity to the city and JB via various transport nodes,” says CDL’s group CEO Sherman Kwek. Check out the latest listings for Norwood Grand properties Ask Buddy How much is the rental yield for Norwood Grand? Condo sale transactions in District 25 Tenure of Norwood Grand Price trend chart for Norwood Grand Condo projects with most expensive average PSF in District 25 How much is the rental yield for Norwood Grand? Condo sale transactions in District 25 Tenure of Norwood Grand Price trend chart for Norwood Grand Condo projects with most expensive average PSF in District 25