http://www.straitstimes.com/archive/...adder-20141208

Hong Leong group tops sales ladder

Its 1,370 new homes sold bring in $1.4b in slowing market

Published on Dec 8, 2014 12:53 AM

By Rachael Boon


CITY Developments and its parent Hong Leong Group have sold more properties than any other developer in a lacklustre market, moving 1,370 new homes so far this year.

The group easily topped the chart for residential sales in Singapore, even as it eyes more projects overseas. Far East Organization, which has often been the top seller, is second.

The Hong Leong group, led by tycoon Kwek Leng Beng, said the units it has sold brought in more than $1.4 billion as of last Friday.

The sales came mostly from projects such as the 944-unit Coco Palms in Pasir Ris, the 616-unit Jewel @ Buangkok, and The Venue Shoppes & Residences, a mixed development.

A Hong Leong group spokesman said "the Singapore residential property market has slowed because of the series of property cooling measures", leading to a smaller group of eligible buyers as well as lower transaction volumes and prices.

Despite those challenges, he said "the group's properties that were launched this year have sold well due to their good location... and profits have been locked in".

The group's total unit sales are almost double those of Far East Organization, which sold a total of 517 residential units with a sales value of more than $628 million as of last Friday.

Its sales were mainly from developments such as the 495-unit RiverTrees Residences in Fernvale Close and the 630-unit Q Bay Residences in Tampines - a joint project with Frasers Centrepoint and Sekisui House.

Another big player, CapitaLand, sold 237 residential units with a total sales value of $444 million, as at Sept 30.

A more current update is not available.

The sales were mainly from projects such as the 1,715-unit d'Leedon in Farrer Road (designed by architect Zaha Hadid), the 1,040-unit The Interlace in

Alexandra, and the 694-unit Sky Vue in Bishan.

R'ST Research director Ong Kah Seng said developer sales have been discouraging this year.

Urban Redevelopment Authority monthly developer sales data for landed and non-landed units in the first 10 months of this year shows developers sold 6,705 private residential units.

Mr Ong expects developers to sell fewer than 8,000 units for the entire year, adding that this figure pales in comparison with the 14,948 units sold last year, and the 22,197 units sold in 2012.

Mr Ong said: "With savvy investors continuing to hold a strategic and cautious outlook for private residential properties in Singapore, we can expect developers to continually cut prices going into the first half of 2015."

He also said that if cooling measures were to be lifted, it would take place only from the second half of next year, "when demand and prices are significantly worsened and when interest rates might possibly rise, which will discourage excessive buying even if cooling measures are lifted".

[email protected]