http://www.straitstimes.com/archive/...nches-20140624

Poor sales slow down luxury home launches

Published on Jun 24, 2014 2:56 AM


PROPERTY developers have been loath to launch new luxury home projects this year as sales remain lacklustre.

Only one major luxury project has been rolled out so far this year, property consultancy HSR said in a report yesterday.

It added that up to 12 high-end projects containing around 2,060 homes in total were still waiting in the pipeline to be launched as at last month.

The only major luxury residential project that has gone on sale so far this year was The Rise @ Oxley Residences in the upscale District 9, HSR said.

The 120-unit project in Oxley Rise near Orchard Road, developed by Oxley Holdings, was launched last month.

It sold eight units at a median price of $2,452 per sq ft (psf) that month, according to Urban Redevelopment Authority (URA) data.

Its launch came after a seven-month drought. The most recent major launches of luxury projects before this were in October last year, according to HSR data.

These were the launch of Goodwood Grand in Balmoral Road in District 10 and Liv on Wilkie in Wilkie Terrace in District 9. Both are freehold.

The 73-unit Goodwood Grand had moved 22 units or around 30 per cent of the project by the end of last month, URA figures show. The average selling price over the past six months was $2,323 psf.

The take-up rate was higher at Liv on Wilkie, which has smaller homes. The project had sold 49 out of 81 units by the end of last month, or 60 per cent. Its average price was $2,366 psf over the past six months.

Developers have mostly been cutting prices for existing unsold units in order to move stock instead of rolling out new projects, HSR said, adding that as many as 12 luxury projects were in the pipeline for launch as at last month.

These include projects by property heavyweights such as City Developments (CDL) and CapitaLand.

CDL, for instance, has yet to begin selling units at the 174-unit Gramercy Park in Grange Road on the former Lucky Tower site, and the 124-unit New Futura in Leonie Hill Road.

It successfully applied last year to extend qualifying certificate (QC) construction deadlines for Gramercy Park and New Futura to until the end of next year.

CapitaLand is also developing a 268-unit project at Cairnhill Road, which does not have an official name yet.

CapitaLand bought serviced residence Somerset Grand Cairnhill Singapore from its own unit for $359 million in 2012 to redevelop the property into an integrated development containing a serviced residence and condominium.

MELISSA TAN