City Dev's private preview for Livia (at suburban Pasir Ris)
over the weekend. More than 200 units (out of a total
of 724 units for the development) were launched at the private preview,
including some additional 2-bedroom units that were launched on Sunday by
City Dev following strong sales on Saturday for such units, and we also
believe that more than 150 units have been sold over the weekend. Visitors had to queue to
park their cars within the compound, which had about 100 carpark lots,
with some choosing to park at the nearby HDB estate instead.
2-bedroom units (around 900-1,150 sqft) were retailing at around S$750 psf
while larger units (around 1,250-1950 sqft) were going at around S$650
psf. The buyer profile tended to be HDB upgraders as well as a handful of
new homeowners.
This strong response coincides with our positive view on the property market, that
the mass-market segment will continue to maintain some form of resilience
in the current economic conditions, supported by strong demand from the
HDB upgrader pool, given continued activity within the HDB resale market.
We believe that if sale numbers continue to be sustained in coming months,
it would encourage a re-rating in the property sector. Sustained numbers
should also boost interest within the physical market as well.
City Dev is Singapore's largest listed real estate developer and is regarded as a
proxy to the Singapore residential market.
Livia's site sits on part of City Dev's legacy landbank at Pasir Ris, which
includes other 99-year leasehold sites as well as a 999-year leasehold
site close to Livia. As much of this Pasir Ris landbank was agricultural
land which City Dev converted to residential use (with the payment of a
development premium to the State), its overall land cost is low which
ultimately pass the cost saving to the buyers.