Wednesday, August 6, 2008

Little India condo sold within 2 hrs

Loh Chee Kong

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REAL estate agents claim a new five-story condominium in Little India has been “100 per cent sold within two hours of balloting”.

The brisk sales for Urban Lofts has caught property analysts offguard, especially coming during the Hungry Ghost month, when superstitious buyers are traditionally scared away.

It was also surprising given the current economic uncertainty, when sentiments for high-end property are expected to be weak.

Huttons Real Estate Group claimed on its website yesterday that all 50 units in the freehold condo in Rangoon Road had been snapped up. They had been marketed at around $912 per square foot.

However, Chesterton International research director Colin Tan pointed out that actual transaction prices might be lower than the listed guide price and this could have attracted speculators in for a quick profit.

If so, said Mr Tan: “I’m not surprised that there is still unsatisfied demand out there. There is demand but at what price?”

Noting that the development had previously not generated much media publicity, Knight Frank research director Nicholas Mak added: “Either this product is very good and underpriced or there was a lot of pre-marketing efforts. But which developer right now would not sell its product at a higher price if they can?”

“For example, they could tell their agents to go and source for potential customers. With the cheques all lined up, within the two hours they just do the administrative work.”

Huttons could not be reached for comment.

According to online advertisements, the development is made up of one single block comprising 46 Soho homes and four commerical units.

Construction is expected to begin by year-end of the year ready for completion by end-September 2011.