Lincoln Suites launched at average $1,680 psf

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Published October 21, 2009

Lincoln Suites launched at average $1,680 psf

By UMA SHANKARI


THE four property developers who jointly bought freehold Lincoln Lodge more than two years ago in a collective sale intend to launch the project tomorrow, they said yesterday.

The developers - Koh Brothers, Heeton Holdings, KSH Holdings and Lian Beng Group - paid $243 million for the District 11 property along Khiang Guan Avenue at the height of the property boom in June 2007. But they put off launching the project as the property market went south soon after.

Now, with the market seemingly staging a recovery, the 175-unit Lincoln Suites will be rolled out, beginning with invited guests tomorrow. The first phase of the launch will see 56 units offered at an average price of $1,680 per square foot (psf).

The consortium paid significantly more than the reserve price of $188 million for the project in 2007 as it was 'very interested' in the site. There were several bids for the site.

It was then estimated that the $243 million forked out worked out to $1,449 psf per plot ratio (ppr) including an estimated development charge (DC) of $413,000.

However, Koh Brothers chief executive Francis Koh said yesterday that since there was no DC payable - among various things - the land cost has since been lowered to around $1,200 psf ppr. Launching the property at $1,680 psf during the first phase will therefore still give the developers a 'healthy' margin, Mr Koh said. Prices could be raised when units are launched in subsequent phases.

'We have partners who are contractors. So we tried to keep the construction cost low, without compromising on the quality,' said Mr Koh. Construction costs have fallen 15-20 per cent over the past year. The developers also allowed occupants to keep renting apartments while holding off tearing down the existing project, and the rental income from this will subsidise building costs, he added.

The interest absorption scheme (IAS) is being offered at the property at a 2 per cent premium over the normal progressive payment scheme. Under the IAS, a property purchaser will not have to make any significant payment (apart from the upfront 10-20 per cent downpayment) until the housing project is completed.

The 30-storey Lincoln Suites will have 44 studio units, 124 one to four-bedroom units, four duplexes and three penthouses. Apartment sizes will range from 463 sq ft to 5,490 sq ft. Many of the units will be small as current market sentiment favours building smaller apartments, said Mr Koh.

Construction is expected to being in the second half of 2010 and the project will receive its temporary occupation permit by end-2014.

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October 21, 2009 Wednesday

Novena condo to offer smaller units at soft launch


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An artist's impression of Lincoln Suites at night. The average price of a unit is $1,680 per sq ft.

AN UPMARKET freehold condo in the Novena area, that has been adapted to create smaller units than first planned, will have a soft launch tomorrow.

Lincoln Suites is being developed by a consortium comprising Koh Brothers Group, Heeton Holdings, KSH Holdings and Lian Beng Group.

The first phase consists of 56 units located on the 6th to 12th floors at an average price of $1,680 per sq ft. Most of the lower floors are for the project's 190 car park lots.

As with many developments these days, Lincoln Suites was reconfigured to fit a number of small units - 44 studio units and 22 one-bedders. Prices start at over $800,000 for a small unit.

'When we got the site, the trend was for big units. We had to come up with something that the market wants because the market has changed,' said Koh Brothers' CEO and managing director Francis Koh at a media briefing yesterday.

The development, of 175 units, is on Khiang Guan Avenue, next to United Square Shopping Mall.

Its 'upcoming debut' was flagged by Koh Brothers as early as September last year but the market was not in its favour.

The consortium bought the site back in 2007 and made the headlines for reaching a record price of nearly $1,450 psf per plot ratio for the Newton area.

But yesterday, Mr Koh said they had a better baseline than thought, which resulted in a lower land cost of $1,280 psf per plot ratio. It will continue to lease out Lincoln Lodge - the building now on the Lincoln Suites sites - until May next year.

Lincoln Suites will boast a gym sitting on the sky bridge that connects its twin towers on the 24th level. One tower will have three and four-bedders, each with a private lift while the other tower will have smaller units.

Other launches planned for this weekend include the 33-unit Wembley Residences at Yio Chu Kang Road and the freehold 278-unit Cyan in Bukit Timah Road, which is understood to have started its preview. The 248-unit Parvis at Holland Hill is set to be released for sale in the next month.

Many developers have taken advantage of the momentum in the past two quarters and are not rushing to launch their existing units or new projects, if any, said Mr Mohamed Ismail, chief executive of PropNex, one of two marketing agents of Lincoln Suites.

Some developers feel there is no need to rush as their landbank is running low, he added.

JOYCE TEO