http://www.straitstimes.com/archive/...-head-20140206

Sengkang condos go head to head

Keen contest for buyers as sale launches at two projects coincide

Published on Feb 06, 2014

By Melissa Tan


DEVELOPERS are back in launch mode after the Chinese New Year holiday, with two new Sengkang projects likely to go on sale within a week of each other.

The first to make its move is the 555-unit Riverbank @ Fernvale by UOL Development, which will launch on Feb 14.

That is likely to be followed by Rivertrees Residences which is expected to be launched a week after that.

Both projects also happen to be next to each other. This proximity means that competition for buyers could be keen, consultants said. The 99-year leasehold Riverbank @ Fernvale is at Sengkang West Way, overlooking the Punggol River.

Its average price will be slightly over $1,000 per sq ft (psf), said Mr Liam Wee Sin, president of UOL's property division, at a media briefing at the showflat yesterday.

He said prices will start from $480,000 for a 495 sq ft one-bedder, going up to at least $1.3 million for a 1,389 sq ft five-bedder.

"Gone are the days where you can push prices up. Right now people will look at the total price quantum and affordability... it's a quantum game."

The project, which is next to the Lush Acres executive condominium project, will have four 19-storey condominium blocks. It is near the Layar LRT station and is expected to be completed in 2018.

UOL paid $489 psf for the site in April last year, which works out to a breakeven cost of about $900 psf.

Price details and the launch date for Rivertrees Residences are not out yet. However, market expectations are for an average price of slightly over $1,100 psf.

A Frasers Centrepoint-led consortium paid $533 psf for the Rivertrees site in June last year.

Consultants said the closeness of the two new launches - both in terms of location and timing - could mean a keen contest for buyers.

"There will definitely be increased competition," said CBRE research head Desmond Sim. "But buyers will benefit because they will have a bigger selection."

OrangeTee research head Christine Li added that the supply in the area was actually "not a lot".

This is because the existing projects in the area are still under construction, which means there are virtually no resale units competing with new units for buyers, she said.

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