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mr funny
30-01-07, 13:25
Property
Published January 30, 2007

Two-tier market seen for S'pore's high-end property

Super-luxury units should hit more than $3,000 psf: Hong Leong

By ARTHUR SIM

SINGAPORE'S high-end property segment is developing into a two-tier market of traditional high-end developments and a new 'super luxury' category that could see average prices rise to $3,000 per square foot (psf) by the end of this year, says CapitaLand Residential Singapore CEO Patricia Chia.


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CDL's upcoming projects: Artist's impression of the Orchard Turn (above) and the new condo coming up on the former Dragon View site
http://img184.imageshack.us/img184/6430/bt55620922901200710fbe6an1.jpg


And Ms Chia believes prices for prime units in super-luxury developments could be even higher than that. 'For some units to cost above $3,000 psf is nothing new because this has been achieved in 2006,' she said.

St Regis Residences by City Developments Ltd (CDL) was the first development to cross the $3,000 psf price here, and its associate company, Hong Leong Holdings, will soon launch two ultra-luxury penthouses for sale at Tate Residences for about $3,300 psf each - or around $21 million.

On luxury home prices, a spokesman for Hong Leong Group said: 'If one uses the benchmark of high-end projects such as Ardmore Park which was sold at $2,000 psf 10 years ago, and assuming a yield of 6 per cent, the price tag should be at $3,500 psf today at 6 per cent yield compounded annually.

'The project Ardmore Park II launched last year was priced at only $2,300 psf. Therefore it may not be unrealistic to expect prices of luxury homes to exceed $3,000 psf.'

CapitaLand has yet to hit the $3,000 psf price for a development. Recent transactions include a penthouse at Scotts High Park for $15.2 million, or about $2,340 psf.

Still, Ms Chia believes there is room for prices for super-luxury homes to go up.

'If you look at some of the recent launches, there was one unit that cost $3,400 psf, but the average price for that development was $1,900 psf. When we talk about the two-tier market, we believe the average price for the super-luxury segment will be $3,000 psf. This will only be for very special projects,' she said.

CapitaLand has two potential super-luxury developments coming up, at Orchard Turn and the former ANA Hotel site.

Attributes that a super-luxury development must have include 'location and uniqueness of product', says Ms Chia.

Dates for the launch of the Orchard Turn and the ANA Hotel site developments have not been confirmed, but the former could be launched as early as this quarter. Both developments will comprise large units and are expected to have only around 100 homes each.

CapitaLand plans to launch 1,000-1,200 units for sale this year, but not all will be in the super-luxury category.

Other upcoming developments include projects at Jalan Mutiara (formerly Dragon View Park), Meyer Road (formerly Meyer Tower/First Mansion) and Cairnhill (formerly Silver Tower).

Ms Chia did not put these projects in any particular category but she did say that the 'bulk' of redeveloped projects on collective sale sites in the prime districts - an estimated 8,000 in the next three years - will sell for $1,800-$2,500 psf, the latest price bracket for traditional high-end developments.

Until this year, high-end developments were those with a selling price of around $1,500 psf. New prices suggests increases of at least 20 per cent.

Ms Chia notes that even though the price index for non-landed properties in the Core Central Region (CCR) registered an year-on-year increase of 17 per cent 'some developments increased by as much as 50, 60, 70 per cent'.

CDL's The Sail @ Marina Bay registered some of the highest resale prices since it was launched in late-2004.

CapitaLand still has projects like Scotts High Park, Citylights, RiverGate, RiverEdge and The Metropolitan on the market.

As at the end of last year, only 423 (11.6 per cent) of units in developments still on the market were left unsold.

Hong Leong Group will also launch new developments including Quayside Collection at Sentosa Cove and Kim Lin Mansions on Grange Road.

Madeira
30-01-07, 13:40
"On luxury home prices, a spokesman for Hong Leong Group said: 'If one uses the benchmark of high-end projects such as Ardmore Park which was sold at $2,000 psf 10 years ago, and assuming a yield of 6 per cent, the price tag should be at $3,500 psf today at 6 per cent yield compounded annually."


This is the most stupid and irresponsible quote from Hong Leong Group.
If we use the same analogy, a Bishan HDB flat that was sold at $800,000 ten years ago would rightfully cost $1.4 million now, based on 6% yield. What type of rubbish is this?

mr funny
30-01-07, 13:54
This is the most stupid and irresponsible quote from Hong Leong Group.
If we use the same analogy, a Bishan HDB flat that was sold at $800,000 ten years ago would rightfully cost $1.4 million now, based on 6% yield. What type of rubbish is this?

:) It wouldn't be the first "stupid and irresponsible quote" from developers. These are interesting times we are living in.

bay shore park
30-01-07, 21:17
Ah.. i see the media and developers talking up property prices together... dun sue me ok, i just speak what i observe.

freeform
01-02-07, 15:43
"On luxury home prices, a spokesman for Hong Leong Group said: 'If one uses the benchmark of high-end projects such as Ardmore Park which was sold at $2,000 psf 10 years ago, and assuming a yield of 6 per cent, the price tag should be at $3,500 psf today at 6 per cent yield compounded annually."

I agree that this is a most stupid and irresponsible quote from Hong Leong. Who are they trying to kid?