http://www.straitstimes.com/archive/...month-20141115

MARKETS

Scotts Square units leased out at $5,200 a month

Published on Nov 15, 2014 12:57 AM

By Dennis Chan Deputy Money Editor


THE luxury segment of the residential market is so dire that upmarket developer Wheelock Properties is leasing out units at Scotts Square, near the heart of Orchard Road.

Wheelock disclosed in its results statement yesterday that 33 units were leased at an average monthly rent above $5,200 during the third quarter. It did not disclose the rent on a per sq ft basis. An Internet check shows that $5,200 is the asking rent for a one-bedder of 626 sq ft.

Wheelock said its focus is on leasing, given the weakening buying demand in the luxury property sector.

As at Sept 30, 79 per cent or 268 units of the 338 units at Scotts Square had been sold, representing 85 per cent of the net saleable area at an average price of $4,004 psf.

Three units at Ardmore Three, a 36-storey freehold development comprising 84 three-bedroom apartments of 1,800 sq ft each, were sold in a private preview at an average price of $3,158 psf.

The Temporary Occupation Permit for the project in Ardmore Park is expected towards the end of the year.

In preparation for its launch, Wheelock is fitting out three showflats on site.

The Panorama, a 698-unit leasehold development in Ang Mo Kio, sold 282 units at an average price of $1,274 psf as of Sept 30.

Wheelock posted a 7.2 per cent drop in third-quarter net earnings to $11 million.

Revenue slumped 17.4 per cent to $22.8 million, as the contribution recognised from Ardmore Three based on the progress of construction was much lower than in the same period last year.

The group also received lower dividend income from its investments following the disposal of its stake in Hotel Properties to its associated company in the second quarter.

Earnings per share shrank to 0.92 cent from 0.99 cent previously while net asset value per share firmed to $2.66 compared to $2.51 as at Dec 31.

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