ST : Luxury home market sees good sales

Nov 2, 2010

Luxury home market sees good sales

Demand buoyed by low interest rates and potential for upside

By Esther Teo



About 75 per cent of 150 units at The Glyndebourne were snapped up at an average price of $2,100 per sq ft during a private preview which began last Friday. -- PHOTO: CITY DEVELOPMENTS

BUYERS appear to be returning to the high-end housing market, with strong sales at a string of recent luxury projects.

City Developments' (CDL) freehold project The Glyndebourne saw 112 apartments - or about 75 per cent - of the 150 units snapped up during a private preview which began last Friday.

The apartments - housed in eight blocks of five storeys each - were sold at an average price of $2,100 per sq ft (psf).

However, prices ranged from $1,900 psf to $2,350 psf, ranging from about $1.59 million for a one-bedroom plus study unit to about $7.15 million for a five-bedroom penthouse, CDL said.

The project - located on the Copthorne Orchid Hotel site - saw all one-bedroom with study, two-bedroom, and three-bedroom with study units sold. CDL said that 10 out of the 23 penthouses, which ranged from 3,541 sq ft to 3,563 sq ft, were also snapped up.

Seventy per cent of the buyers were local, with permanent residents and foreigners from countries such as Malaysia, Indonesia, South Korea and China making up the remaining 30 per cent.

CDL said that it had initially planned to release just 60 units in phase one of the preview. However, 'to cater to the strong demand', the firm released additional units progressively. It is managing the marketing of the condo on behalf of its hotel unit Millennium & Copthorne Hotels, which owns the hotel.

This strong performance comes on the back of similarly strong sales at Allgreen Properties' 118-unit Suites at Orchard. In the first two days after it went on sale last month, about 65 apartments were sold in the $2,000 to $2,200 psf range.

SC Global also sold a penthouse last month at The Boulevard Residence for $30 million, or $4,242 psf. Both in terms of the total price and the price psf, this is the highest achieved in the development.

Experts said that high-end homes have done well because of the low interest rate environment and the fact that luxury segment prices have yet to surpass their previous peak. There is also plenty of liquidity still in the market, they added.

Cushman & Wakefield managing director Donald Han said that high-end prices are about 12 per cent lower than their peak in the first quarter of 2008, providing investors, who were looking to park their money in good and stable investments, with the potential for upside.

It is the only segment of the property market here that has yet to surpass its previous price peak.

'The bottom line is that, as interest rates remain at historic lows, investors are looking for good opportunities and compelling buys to park their money,' he added.

A UOB Kay Hian report said that it expects high-end segment projects to do well in the coming months.

'They offer relatively better value compared to other segments and are well supported by lower interest rates and liquidity inflows,' it added.

Far East Organization also sold 30 units across its portfolio last week, including sales at Waterfront Gold in the Bedok Reservoir area; Vista Residences off Thomson Road; The Shore Residences in the Katong area; The Greenwich in Seletar Road; and Silversea in the East Coast area.

The firm will be officially launching the 214-unit The Lanai - which consists of two-, three- and four-bedroom units that range from 947 sq ft to 1,615 sq ft - along Hillview Avenue this weekend.

The 999-year leasehold project has already sold 76 units at a preview last month, which included a bulk purchase, with prices starting from $1,290 psf.

Industry players also said that several other high-end launches, such as Robinson Suites, Spottiswoode Residences and Helios Residences, might be launched soon.

They added that the launch of CapitaLand's former Farrer Court site, with more than 1,700 units, will also give further indications on the momentum in the high-end segment.

esthert@sph.com.sg


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MONEY TO BE MADE

'The bottom line is that as interest rates remain at historic lows, investors are looking for good opportunities and compelling buys to park their money.'

Mr Donald Han, Cushman & Wakefield managing director