ST : New rules 'unlikely to hit luxury homes'

Sep 4, 2010

New rules 'unlikely to hit luxury homes'

Prices of high-end projects have not peaked and are still reasonable, says developer

By Harsha Jethnani

THE new rules aimed at cooling the property market are not likely to affect high-end homes, according to a local developer.

Wing Tai Holdings deputy chairman Edmund Cheng said yesterday: 'Looking at today's prices, the high-end market and prices of very luxurious projects have not reached the last peak yet.'

He also believes there will be buyers, both locally and especially from overseas, for pricey properties.

'I think that we are still very reasonable,' he said, when comparing local prices with those in Hong Kong or Beijing, especially considering the economic and living standards in Singapore.

Mr Cheng said the new measures were 'timely', as the price rises of mass-market homes were not sustainable.

But significant price falls may not occur as low interest rates pose fewer difficulties for financing, he added.

Mr Cheng said that, unlike in the past, price bids from developers for future tenders could adjust downwards. So far, developers have been bidding at very high prices that cannot allow for margins of error.

He was speaking at a briefing to announce the upcoming launch of remaining units at Wing Tai's resort-style Belle Vue Residences in Oxley Walk. A soft launch of the development had taken place over a year ago.

'There is no better timing than now,' he said of the upcoming launch.

A total of 109 units have been sold so far at the 167-unit development at prices between $2,000 per sq ft (psf) and $2,700 psf. The remaining units will be set at $2,300 psf to $2,800 psf.

Mr Cheng told the briefing that foreigners, mainly Chinese, Malaysians and Indonesians, had taken up about 52 per cent of the units sold.

Sizes of a three-bedroom unit start from 1,600 sq ft, and those of four-bedroom units are from 2,000 sq ft.

The development is designed by Japanese architect Toyo Ito and will be ready for occupation in the coming weeks, Wing Tai said.

harshamj@sph.com.sg