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How much further will prices fall?
By Tay Hock Meng, Cecilia Chow / The Edge Property | January 21, 2016 10:00 AM MYT
Tags: private residentialprice fallrecovery

This year has seen some startling transactions in the high-end condominium segment, with some sellers sustaining staggering losses. This could be seen in St Regis Residences and The Orchard Residences in the prime Orchard area, Seascape and Turquoise in Sentosa Cove, as well as One Shenton in the CBD core. However, it could have been a lot worse, reckon property consultants.

What staved off a property crash was the fact that the big listed property developers would rather hold on to their unsold stock than offload units at a steep discount. A prime example is City Developments Ltd (CDL), which has an extensive portfolio of prime and luxury projects. The developer’s latest luxury project, the 174-unit freehold Gramercy Park on Grange Road, will be completed soon. CDL said in its 3QFY2015 results announced on Nov 12 that it will “continue to monitor market conditions carefully” before launching Gramercy Park. The developer has another upcoming project called The New Futura, a high-end condo with 124 units on Leonie Hill Road, which has yet to be launched for sale.

CDL’s joint venture project with Wing Tai Holdings, namely the 156- unit Nouvel 18 at Ardmore was completed at end 2014, but is still not on the market for sale. Another project is mixed-use development South Beach, a joint venture between CDL and Malaysia’s IOI Group. The 190- unit luxury South Beach Residences sits on top of the 654-room hotel tower, and is not for sale yet.



A penthouse at Seascape purchased for $11 million four years ago was sold in May this year for $5.8 million





St Regis Residences has emerged as a value play for investors, with prices now between $2,000 and $2,100 psf





‘Value erosion of a discount’

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