St Regis homes could be priced at record $2,600 psf
CDL may sell premium project at prices topping those of the last property boom
CITY Developments’ (CDL’s) super luxury St Regis Residences being built in the exclusive Cuscaden/Tomlinson area could be offered for sale at record-busting prices of $2,600 per sq ft (psf) - well above the top prices at the height of the property boom in 1996-1997.
That is according to Credit Suisse analysts, quoting sources in the know.
‘According to our sources, pricing could be as high as $2,600 psf, as the list of interested buyers continues to grow,’ said a Credit Suisse report yesterday. ‘We remain conservative and have only imputed an average price of $2,100 psf in our forecasts.’
St Regis Residences have been described by CDL as a premium product, with many large units of 400 sq m (4,310 sq ft) in size. It will have three- to four-bedroom units and penthouses.
Assuming the 400 sq m units are priced at $2,100 psf, each one will cost at least $9 million.
St Regis Residences will have all the perks of the St Regis Hotel, including access to St Regis’ much-touted 24-hour butler service, hotel-style room service and cleaning, but residents must pay ongoing fees for these.
Property watchers expect the property to set a new price benchmark in the market. If it is sold at $2,600 psf, it would be a new record for Singapore. Ardmore Park, long seen as having Singapore’s most expensive homes, achieved a high of $2,400 psf in the 1996-1997 peak.
‘St Regis is in a class of its own. If you have a very different product, you will set a new benchmark,’ said DTZ Debenham Tie Leung’s executive director, Mrs Ong Choon Fah.
An industry source said more foreign buyers were expected to buy for prestige reasons.
Prices in the luxury homes market climbed by about 20 per cent last year and could rise by 10 to 15 per cent this year, though the recovery has yet to filter down to the mass market, said property consultancy Savills.
St Regis Residences, which is on a 999-year leasehold site and next to the new six-star St Regis Hotel, could be launched next month. Both developments are jointly owned by CDL, Hong Leong Holdings and TID.
It will be the first of at least five projects that CDL has lined up for launch this year, as it looks to replicate its residential sales success last year, said the Credit Suisse report. Last year, CDL, together with Hong Leong Group, sold 2,300 residential units, taking the top spot with a 30 per cent market share.
The other projects lined up include its 264-unit Sentosa Cove condominium, which could be priced at $1,200 psf on average and launched in the middle of the year, said Credit Suisse.
A 214-unit condominium at the freehold King’s Centre site could be launched in the first half at $930 psf on average, followed by a 360-unit block at the 99-year leasehold 1, Shenton Way site in the third quarter and possibly priced at $1,100 psf on average.
By year-end, CDL may launch its 999-year leasehold Pasir Ris site, which could have 600 units priced at $580 psf on average.
Credit Suisse is forecasting that CDL, which will report its full-year results next Tuesday, will achieve a net profit of $207 million.
Source : Straits Times - 23 Feb 2006
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