Keppel is repeating the same strategy they used for the Caribbean, where they originally held back 150 units for corporate lease. These were rented as fully furnished units at approximately 50% above market rents (e.g $7-8K for a 2 bedder) and then sold at an average of $1450psf last year (versus the price of their last release in 2007 of $750psf). This is how Keppel the benchmarked the Reflections first launch price.
Their phase three is already in the works. Total development size 325,00sqft, so 200-300 units total depending on the size.
http://www.heintges.com/project.php?...pel-bay-plot-3
I think this may be why Caribbean prices have been so firm recently. This is a mirror of the Caribbean plot.
Now if you were Keppel with 3 more plots to develop after this, what price are you going to try to launch? $1500 (Caribbean current average) $2,000psf (Reflections current average, assuming a range of $1500-$2500psf) or $2,500psf? And what price do you think Keppel believes it can get for the balance Reflections units in (say) 2016...$2,500psf or current prices?
For those curious, they are leasing at fully furnished apartments. Published rate is $10-13K for a 2bedroom, average $13-19K for 3bedroom and $30K for a 4bedder, with 10% off for the current time. These are all villa blocks with inward facings. They are not available for sale...I asked and was not entertained.
Keppel is a company with the same guys in charge for 30 years. This is a "hedgehog" company, what they plan to do is not very difficult to work out.
http://www.ianbell.com/2009/05/19/th...h-one-are-you/