Luxury properties prove a tough sell

[sleek]

Luxury properties prove a tough sell (http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1133789/1/.html)
By Jo-ann Huang | Posted: 07 June 2011 2143 hrs

SINGAPORE: Sales of luxury properties in Singapore seems to be losing its shine and has slowed down in recent weeks. That is according to industry players who say that the segment has underperformed despite the overall property boom last year.

Analysts said most buyers of luxury properties here, mainly foreign investors, are turning cautious about buying their next multi-million dollar home due to the uncertain global economy.

Hamilton Scotts is one of the most anticipated super luxury properties to be launched in the last three years. The project costs more than S$100 million and it features a S$20 million en suite car porch.

Each unit is selling between S$8 million and S$10 million each, or an average of S$3,800 per square foot. But sales at the Hamilton Scotts have been slow. Out of the 56 units in the property, only 19 have been sold at between S$3,000 and S$3,700 per square foot.

The freehold property was launched in mid-2008, in the heat of the Lehman Brothers crisis.

Sales of similar luxury properties have also been slow, with the upmarket development 8 Napier selling 27 out of the total 46 units. Its latest transaction was in April at S$3,000 per square foot.

Hamilton Scotts developer KOP properties said luxury property buyers have been cautious with their cash.

Leny Suparman, CEO of KOP Properties, said: "I have not shown people, the buyers and consumers, what this project really looks like. I think people are unsure about the car porch mechanism so I think we really need to show them the entire thing and to be able to fully showcase all the wonders of this project.

"For the past three years, despite the fact that we didn't have a show flat, we have been selling very well off the floor plans and the sales gallery in our office, I think we have done very well."

Liang Thow Ming, head of residential services at Credo Real Estate, said sales of luxury properties tend to be slower when compared with mass market home sales.

"If you look at properties of a price tag somewhere in the region of S$8 million to S$10 million, you don't expect these units to fly off the shelf anyway. So I think the pace of sales at Hamilton Scotts is comparable to the general luxury market," said Mr Liang.

But analysts said the luxury property segment will cool off further, this is after recovering slightly last year from the property downturn during the global financial crisis.

Mr Liang said: "Where foreign buying is concerned, and where the luxury end of the market is concerned, the global geopolitical situation have slowed the pace of foreigners wanting to buy properties, be it in Singapore or anywhere else. So generally, I think right now a lot of foreign buyers, they would probably not take the plunge so easily. Therefore, resulting in the luxury end market not being as vibrant as the rest of the market."

In the last three quarters, prices of uncompleted non-landed core central region homes, which include most luxury properties, grew by three per cent. Prices have already surpassed their peaks in 2008.

This is a much slower growth compared with the 26 per cent increase in prices in the whole of 2007, during the last property boom.

Luxury properties in Asia did well the first quarter of this year, recording a 5.5 per cent price growth, well over the 0.9 per cent from the previous quarter.

But key cities in Southeast Asia, including Singapore as well as major cities in China, recorded negative price growth to just over one per cent. CBRE Richard Ellis attributes this to a slew of property cooling measures introduced in those territories.

Hong Kong and Guangzhou were the only cities that recorded a price growth surge at 4.3 per cent and 7.2 per cent for the quarter.

Despite the uncertain global economic outlook, Ms Suparman is positive that sales at the Hamilton Scotts will improve, once it is completed by December this year.

"I think it's a little bit challenging for them but if you have a completed product, it's much easier for them to feel the space and to imagine the kind of lifestyle. So I believe this could be picked up once all these luxury projects are completed," said Ms Suparman

Analysts expect prices of central region luxury properties to climb slowly, by about five per cent this year.

-CNA/ac

[Wild Falcon]

These analysts FINALLY admit that the luxury properties are are tough sell? Why r they always behind the curve? Investors are better off reading this forum of amateurs.

[stalingrad]

These analysts FINALLY admit that the luxury properties are are tough sell? Why r they always behind the curve? Investors are better off reading this forum of amateurs.

that is right. If you listened to me one year ago, I was already singing the same tune, accompanied by vicious attacks by the likes of Teddy.

[TheIdler]

Wat i dun understand is how all these "luxury" properties manage such high prices when they r in flood prone areas?

[devilplate]

Wat i dun understand is how all these "luxury" properties manage such high prices when they r in flood prone areas?

ask CCR lor

he insist tat CCR and OCR at least 4-5 times differnce in px

[bargain hunter]

"Out of the 56 units in the property, only 19 have been sold at between S$3,000 and S$3,700 per square foot."


and they are still trying to overstate the prices?!?!?! :doh:

a check of the caveats for the past 2 years showed 13 units sold at The Hamilton Scotts. Prices were between 2300 to 3313psf. where did 3 to 3.7k come from?!

[stalingrad]

"Out of the 56 units in the property, only 19 have been sold at between S$3,000 and S$3,700 per square foot."


and they are still trying to overstate the prices?!?!?! :doh:

a check of the caveats for the past 2 years showed 13 units sold at The Hamilton Scotts. Prices were between 2300 to 3313psf. where did 3 to 3.7k come from?!

Hehe, bad buys got caught by our bargain hunters again.

what I want to know is how those mechanical car ports work and who need them. Are these car ports built so that your cars won't be submerged in the flooded basement carparks?

[devilplate]

"Out of the 56 units in the property, only 19 have been sold at between S$3,000 and S$3,700 per square foot."


and they are still trying to overstate the prices?!?!?! :doh:

a check of the caveats for the past 2 years showed 13 units sold at The Hamilton Scotts. Prices were between 2300 to 3313psf. where did 3 to 3.7k come from?!

2300psf sounds cheap leh....firesale?

[bargain hunter]

that was aug 09. maybe 2nd floor? but then again 3313psf, ie the highest price of the 13 caveats in the past 2 years was achieved in sep 09 (assumed to be highest floor). but still baffling this 1 month gap and 44% premium haha. since then prices were below 3313. where got 3000 to 3700?!?!?! hahaha


2300psf sounds cheap leh....firesale?

[devilplate]

that was aug 09. maybe 2nd floor? but then again 3313psf, ie the highest price of the 13 caveats in the past 2 years was achieved in sep 09 (assumed to be highest floor). but still baffling this 1 month gap and 44% premium haha. since then prices were below 3313. where got 3000 to 3700?!?!?! hahaha

haha

how abt this....firesale subsale or wat?:confused:

http://www.propertyguru.com.sg/listing/525598/for-sale-the-hamilton-scotts

[bargain hunter]

http://www.propertylaunch.sg/images/hamiltonscotts/biglayout.jpg


http://www.propertylaunch.sg/Hamilton%20Scotts.php

not sure how it works though. i only know the maintenence is not going to be cheap. very important to maintain those car lifts very often.

imagine your young scion neighbours revving their cars when they go out or return at 3am while in the car lift. :) very good noise + fume pollution.


Hehe, bad buys got caught by our bargain hunters again.

what I want to know is how those mechanical car ports work and who need them. Are these car ports built so that your cars won't be submerged in the flooded basement carparks?

[bargain hunter]

maybe its the 2300psf unit trying to sell at a profit? haha


haha

how abt this....firesale subsale or wat?:confused:

http://www.propertyguru.com.sg/listing/525598/for-sale-the-hamilton-scotts

[devilplate]

http://www.propertylaunch.sg/images/hamiltonscotts/biglayout.jpg


http://www.propertylaunch.sg/Hamilton%20Scotts.php

not sure how it works though. i only know the maintenence is not going to be cheap. very important to maintain those car lifts very often.

imagine your young scion neighbours revving their cars when they go out or return at 3am while in the car lift. :) very good noise + fume pollution.
car fumes cannot enter the house

[bargain hunter]

i have a question, what if the biometric scan breaks down?



haha

how abt this....firesale subsale or wat?:confused:

http://www.propertyguru.com.sg/listing/525598/for-sale-the-hamilton-scotts

[bargain hunter]

ok, no revving in the car lift. :ashamed1:

but still. many potential problems wor. once the biometric thing doesn't work then u can't retrieve your million dollar car. and u have to queue up to retrieve your car if everyone returns or goes out together?




car fumes cannot enter the house

[devilplate]

ok, no revving in the car lift. :ashamed1:

but still. many potential problems wor. once the biometric thing doesn't work then u can't retrieve your million dollar car. and u have to queue up to retrieve your car if everyone returns or goes out together?

u may wana visit the show gallery n ask them ....

ask abt the maint fee too....i guess 2k/mth....hehe

but those richies can afford la..10k maint fee aso peanut

[bargain hunter]

thot they said they have been selling without show gallery? LOL.



u may wana visit the show gallery n ask them ....

ask abt the maint fee too....i guess 2k/mth....hehe

but those richies can afford la..10k maint fee aso peanut

[devilplate]

thot they said they have been selling without show gallery? LOL.

ya, i mean their office gallery....

[Jadey]

"Out of the 56 units in the property, only 19 have been sold at between S$3,000 and S$3,700 per square foot."


and they are still trying to overstate the prices?!?!?! :doh:

a check of the caveats for the past 2 years showed 13 units sold at The Hamilton Scotts. Prices were between 2300 to 3313psf. where did 3 to 3.7k come from?!

one possibility is that if the buyer doesnt take up bank loan there will be no caveat.

[bargain hunter]

but there are 13 caveats on URA while only 19 units were sold. so they have no excuse. :D


one possibility is that if the buyer doesnt take up bank loan there will be no caveat.

[Jadey]

tough sell partly because it is a dumb idea to park your car in your living room.
Honestly, how long does one expect to wait for the lift in the morning or evening when everyone is leaving or coming back at around same time? And what happen if the lift break down or when it require maintenance.

Such project might do well in Dubai.

[kane]

Luxury is a hard sell because it's gone beyond the means of the middle. They're looking at an price inelastic group of overseas foreigners to be buying those units. Sometimes they come, sometimes they don't. But for the suburban units, you always find shoppers there every weekend.

[bargain hunter]

based on essentially the same information, ST has twisted the news to positive from the negative tone of CNA. Why? becoz they want Hamilton to be advertised on ST. :mad:


KOP Properties upbeat despite slow sales at luxury condo

DESPITE slow sales at its high-end Hamilton Scotts condominium, luxury property developer KOP Properties will not lower its prices for the Scotts Road project.
Instead, the company will hold out for buyers who are prepared to pay for quality properties, said chief executive Leny Suparman.
In a telephone interview with The Straits Times last week, she expressed optimism about the luxury home sector.
'The only way prices can move is up,' she said. 'If there are two to three more luxury property launches this year, it will start the trend and people will want to come in and get a slice of the action too.'
While prices in the mass market segment have recovered substantially, luxury property prices are still 20 per cent below the pre-crisis peak, Ms Suparman said.
'There needs to be this momentum for the ultra-luxury segment as well - it will be positive for the overall market,' she said.
'There are lots of people with money but when it comes to selling such properties, I believe you need to be able to feel the space before you can decide whether to buy.'
Ms Suparman was speaking after a KOP Properties unit, Hayden Properties, held a 'topping out' ceremony for Hamilton Scotts recently. This marks the final pouring of cement at a property project before completion.
The 30-storey, 54-unit ultra-luxury condo is expected to be completed in the fourth quarter of this year.
In the meantime, it has seen a take-up rate of about 40 per cent - unchanged since last December.
Prices average between $3,600 and $3,800 per sq ft (psf).
KOP Properties said it is in talks with buyers to sell several units in its other development, The Ritz-Carlton Residences.
The project has sold 19 units so far, with the most recent sale in January. Prices for the apartments average between $3,300 and $3,800 psf.

[kane]

Sellers will naturally say their fruits are the sweetest. When they say it isn't so sweet, maybe they're trying to get a discount from the supplier.

[Jadey]

based on essentially the same information, ST has twisted the news to positive from the negative tone of CNA. Why? becoz they want Hamilton to be advertised on ST. :mad:


KOP Properties upbeat despite slow sales at luxury condo

DESPITE slow sales at its high-end Hamilton Scotts condominium, luxury property developer KOP Properties will not lower its prices for the Scotts Road project.
Instead, the company will hold out for buyers who are prepared to pay for quality properties, said chief executive Leny Suparman.
In a telephone interview with The Straits Times last week, she expressed optimism about the luxury home sector.
'The only way prices can move is up,' she said. 'If there are two to three more luxury property launches this year, it will start the trend and people will want to come in and get a slice of the action too.'
While prices in the mass market segment have recovered substantially, luxury property prices are still 20 per cent below the pre-crisis peak, Ms Suparman said.
'There needs to be this momentum for the ultra-luxury segment as well - it will be positive for the overall market,' she said.
'There are lots of people with money but when it comes to selling such properties, I believe you need to be able to feel the space before you can decide whether to buy.'
Ms Suparman was speaking after a KOP Properties unit, Hayden Properties, held a 'topping out' ceremony for Hamilton Scotts recently. This marks the final pouring of cement at a property project before completion.
The 30-storey, 54-unit ultra-luxury condo is expected to be completed in the fourth quarter of this year.
In the meantime, it has seen a take-up rate of about 40 per cent - unchanged since last December.
Prices average between $3,600 and $3,800 per sq ft (psf).
KOP Properties said it is in talks with buyers to sell several units in its other development, The Ritz-Carlton Residences.
The project has sold 19 units so far, with the most recent sale in January. Prices for the apartments average between $3,300 and $3,800 psf.


Because SPH is also a developer?

[bargain hunter]

dun think so. their sky@eleven has so far been a one-off. they may develop again but currently has no landbank. so its more for the adverts. :ashamed1:


Because SPH is also a developer?

[Jadey]

dun think so. their sky@eleven has so far been a one-off. they may develop again but currently has no landbank. so its more for the adverts. :ashamed1:

Property still contribute about 356milion in revenue for SPH in 2010, or about 26% of SPH total revenue.

I think they also own Paragon, Clementi Mall,

[bargain hunter]

yes. non residential they have, but not residential or development.


Property still contribute about 356milion in revenue for SPH in 2010, or about 26% of SPH total revenue.

I think they also own Paragon, Clementi Mall,

[Jadey]

yes. non residential they have, but not residential or development.

http://www.asiaone.com/Business/News/Story/A1Story20100608-220926.html


Mr Seow Choke Meng, executive director of Times Development, described residential property development as a "third leg" for SPH, after its media products and mall-management business.
"Property development is part of our core portfolio now," he said. "We're constantly looking out for residential sites that can deliver promising returns.

[bargain hunter]

yes. precisely, that's what i meant. they MAY do residential development again but they don't have landbank now. :doh:

this has nothing to do with helping KOP talk up their project. if they want to do development and they dun have landbank. shouldn't they hope for lower land prices to build up their landbank? :confused:


http://www.asiaone.com/Business/News/Story/A1Story20100608-220926.html

[Wild Falcon]

They should try to sell the units to the residents at St Regis Residences. The car lift in the living room will definitely appeal to this group. At least their Farrari and Lambo will not be caught in the flood :) Poor guys, many of those exotic cars were towed away from the St Regis carpark after the condo flooded ("luxury" condo but cant even get basic drainage right).

[kane]

Their drainage worked last year so what was the difference in tthe equation this year?

[ysyap]

Their drainage worked last year so what was the difference in tthe equation this year?Wear and tear! :scared-4: No lah, its once in 50 years scenario! Think about it, its only flood with no human casualty. If its once in 200 years earthquake and 10 buildings collapsed :scared-1: ! What will HDB, URA or PUB say then? Do we really have to wait till then? Anyway, its always good to be kiasu for prime areas coz buyers paid so so much $$$ so what is putting a little more drainage, etc to ensure its class and status?

[stalingrad]

Their drainage worked last year so what was the difference in tthe equation this year?
the difference is that the main stretch of orchard road is getting higher and higher from road upgrading, and water has no place to go but to st. Regis.

another example of the band-aid approach is Tessarina. Now that wilby road has been elevated by up to a meter, foodwater at buket timah has no place to go but sixth avenue, which was flooded on Sunday.

[rattydrama]

the difference is that the main stretch of orchard road is getting higher and higher from road upgrading, and water has no place to go but to st. Regis.

another example of the band-aid approach is Tessarina. Now that wilby road has been elevated by up to a meter, foodwater at buket timah has no place to go but sixth avenue, which was flooded on Sunday.

1o bottles with 9 caps....dont pray pray with act of god now.

[sh]

1o bottles with 9 caps....dont pray pray with act of god now.

buy house next to environment minister's sure won't get flooded one....;)