CapitaLand sets new benchmark prices for condos in East Coast area
By Daryl Loo, Channel NewsAsia | Posted: 09 April 2007 1624 hrs
SINGAPORE : Developer CapitaLand has set a new benchmark price for private residential property the East Coast area.
The developer launched its condominium project - The Seafront on Meyer - over the weekend.
Over a third of the 327-unit project were sold at average prices of between $1,400 and $1,800 per square foot.
Back in January, GuocoLand had set new record prices of close to $1,700 per square foot for its neighbouring project The View @ Meyer.
CapitaLand has launched 184 units of the project for sale under its first phase.
The 24-storey freehold condominium is being marketed by estate agent ERA.
"Among the buyers, about 60% are local and 40% are foreigners. And among the local buyers, we found that about 60% of them are staying in the East Coast area, so it's likely they are buying for their own stay. Of the 40% that are foreigners, they consist of people from Malaysia, Indonesia and India, and we also have some buyers from Korea," said Jack Chua, president of ERA.
According to CapitaLand, the remainder of the project is likely to be launched in the next two weeks.
Analysts said the new benchmark prices being set outside the core central region was partly due to house hunters who had recently sold their homes en bloc.
"These are areas where there have been quite a few en bloc sales that have started or have already been transacted. And now, the deals are completed and demolition work is starting to take place, and people are being displaced from their homes," said Ku Swee Yong, director of Savills Singapore.
"For example in the Newton area, Grange Road, and in the Katong, Amber area, people are being displaced. They are looking for apartments still within their locality, but perhaps a little further away from the core central area. So price increases will start to spread out."
According to recent URA estimates, private home prices in the core central region jumped 5.6% in the first quarter, while those in the central region - which includes Meyer Road - went up by 2.9%. - CNA /ls