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Thread: Prices of new luxury homes surge

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    Default Prices of new luxury homes surge

    http://www.businesstimes.com.sg/sub/...32740,00.html?

    Published March 4, 2010

    Prices of new luxury homes surge

    Upmarket residential property rentals could climb 5-10% this year: CBRE


    LAUNCH prices of new luxury residential projects in Singapore rose about 20-25 per cent last year and could appreciate a further 10-15 per cent this year, says CB Richard Ellis.

    Rentals of completed luxury homes, which slid 10.5 per cent in 2009, could increase 5-10 per cent this year, according to the property consulting group.

    Already, in the first two months of this year, prices have been climbing steadily, CBRE said, citing sales of 88 units at Urban Suites at $2,500 psf on average and about 35 units at The Laurels at $2,500-2,900 psf, although the latter features smaller units. Both projects are in the Cairnhill area.

    Other luxury projects that will be marketed in the first half of 2010 include Ardmore 3, Nassim 8 and those on the sites of Grangeford and Parisian, CBRE said.

    The Singapore residential property launch meanwhile continues to teem with activity in various market segments.

    At Meyer Road, Hong Leong Holdings is releasing this week close to 60 upper-floor units at Aalto, a 27-storey freehold condo with a total of 196 units. Prices will start from $2,000 psf.

    'Absolute pricing ranges from $3.1 million for a 1,442 sq ft three-bedder on the 18th floor to $5.3 million for a 24th level four-bedroom apartment of 1,959 sq ft,' the company said in a statement yesterday. A handful of lower-floor units are also available, from $1,500 psf.

    The project was first launched in early 2008 and as at end-January this year, 118 units had been sold. Aalto comprises three and four bedroom apartments and penthouses. It is expected to receive Temporary Occupation Permit in September this year.

    Hiap Hoe is also doing an official launch of its 200-unit Waterscape At Cavenagh this week. So far, it has sold 96 units. The average selling price is about $1,880 psf. The seven-storey freehold condo comprises one-to-four-bedroom apartments, and penthouses.

    Later this month, Hong Leong Group could release a 202-unit project on the former Ong Building site at 76 Shenton Way. TID Pte Ltd - a joint venture between Hong Leong and Mitsui Fudosan - is also expected to preview in a few weeks Nathan Suites, a 24-storey project at Nathan Road, opposite the Malaysian High Commission. The project's 65 units comprise two, three and four-bedroom apartments as well as penthouses.

    CBRE, in its release on the luxury residential market, said that recent sales activities point to the start of a revival in this market segment. 'It is likely that this interest in luxury homes is sustainable given the low interest rates and improving economic environment,' the firm's executive director, Li Hiaw Ho, said.

    However, he predicts that 'we are unlikely to see runaway prices the way we did in 2007 as homebuyers will be less impulsive and more discerning following the latest government measures' to cool the market.

    Back then, average launch prices of new luxe projects jumped from $1,800-2,600 psf in 2006 to $2,000-4,000 psf in 2007.

    Overseas buyers returned at upmarket property launches in Singapore in Q4, as seen at Marina Bay Suites, Urban Suites, and Kasara the Lake, a plush villa development at Sentosa Cove. This bodes well for the market segment.

    Elsewhere in Asia, prices of luxury homes in the secondary market edged up in Beijing, Shanghai, Guangzhou and Hong Kong by 6-10 per cent in Q4 2009 over the preceding quarter while remaining largely stable in other markets.

    Singapore saw a 2.7 per cent quarter-on-quarter gain in average prime residential price in the secondary market to $2,260 psf in the fourth quarter. Despite strong sales, leasing demand for luxury homes remained rather fragile in some cities, with Beijing, Guangzhou, KL and Ho Chi Minh City posting a modest rental drop in Q4.

    Leasing markets in Hong Kong, Shanghai and Bangkok began to gradually recover, with rents for luxury homes rising by increments ranging from one per cent in Bangkok to 6 per cent in Hong Kong.

    Looking ahead, CBRE forecasts that end-users and investors may adopt a more cautious approach in the next couple of months following the introduction of measures that tighten lending for property in certain markets.

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    http://www.straitstimes.com/Money/St...ry_497692.html

    Mar 4, 2010

    Property launches to go into high gear

    Luxury market expected to make strong rebound as economy improves

    By Joyce Teo, Property Correspondent


    DEVELOPERS are gearing up to launch more projects - especially prime ones - into a thriving property market driven by confident buyers keen to splash out on the back of the improving economy and a low interest rate environment.

    The Government's anti-speculation moves last month are having little effect on genuine home hunters, who have ever wider real estate options.

    Potential buyers will certainly have no lack of choices when it comes to new launches this month with 'easily half a dozen launches' coming up, said CB Richard Ellis (CBRE) executive director of residential services Joseph Tan.

    Mass-market projects have been setting the pace for months but prime developments, which began inching back into the market late last year, are becoming more prevalent.

    A CBRE Research report yesterday said that Singapore's luxury residential market is expected to make a strong rebound.

    It noted that new luxury projects recorded launch prices of between $2,500 and $3,400 per sq ft (psf) in the fourth quarter of last year.

    This beats the $2,100 psf to $2,700 psf range achieved at the end of 2008, demonstrating a strong turnaround, it said.

    In January and February, 88 units of CapitaLand's prime Urban Suites were sold at $2,500 psf on average while about 35 units of The Laurels in Cairnhill Road went at $2,500 psf to $2,900 psf, it said.

    The launches coming up on the weekend include the Hiap Hoe Group prime estate Waterscape At Cavenagh, and Hong Leong Holdings' Aalto.

    The Waterscape At Cavenagh will house 200 one- to four-bedroom units and penthouses ranging from 581 sq ft to 2,992 sq ft. Prices at this weekend's launch will be about $1,880 per sq ft.

    Hiap Hoe gave a preview of the project in late November and sold just three units at a median price of $1,909 psf. Another five units were sold in December. But this year it has sold 88 units, with the bulk transacted over the weekend after Chinese New Year, from $1,715 psf to $2,020 psf or $1.03 million to $3.15 million.

    This weekend will also see Hong Leong Holdings release 60 high-floor units at the freehold 196-unit Aalto in Meyer Road. Prices will start from $2,000 psf.

    A handful of lower-floor units are also available, from $1,500 psf. Absolute pricing ranges from $3.1 million for a 1,442 sq ft three-bedder to $5.3 million for a 1,959 sq ft four-bedroom unit.

    The Aalto was first released in 2007 with units selling for around $1,950 psf. It was then launched in January 2008.

    One unit was sold in January this year at $2,011 psf, leaving 78 unsold units in the condo, which will receive its temporary occupation permit in September.

    A Hong Leong Holdings spokesman said: 'We have maintained the original selling price of the Aalto in light of premium value and location.'

    Next weekend, buyers can look forward to Cheung Kong Holdings' The Vision in West Coast Crescent, The Laurels and Tiong Aik's Coralis in Joo Chiat Road. The Vision, a 99-year leasehold condo, is said to be priced about $1,100 psf.

    Coralis is a freehold condo featuring one-bedders as small as 495 sq ft and penthouses of up to 3,089 sq ft. Indicative pricing is from $1,350 to $1,550 psf.

    The pace will quicken over the next two to three months with possible launches including 76 Shenton Way, Seascape and Residences at W in Sentosa Cove, The Waterline on the former Toho Gardens site in Yio Chu Kang, UOL Group's Dakota Crescent project, and Starlight Suites in River Valley Close.

    CBRE Research said the luxury projects Ardmore 3 and those on the sites of the old Grangeford, Hillcourt and Parisian estates are likely to be marketed in the first half of the year. Prices and rents of luxury properties are expected to rise by 10 per cent to 15 per cent and 5 per cent to 10 per cent respectively this year.

    Overall, prices will continue to rise but at a much less frenetic pace, said Mr Tan. 'If you look at the recent land tenders, there's a certain replacement cost that developers need to look at. Some developers may want to put a forward price on their projects now as they don't want to run out of their landbank too quickly.'

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