CITY Developments Ltd (CDL) moved 18 units of its high-end condominium project New Futura at an average selling price of S$3,200 per square foot (psf) on the first day of launch on Thursday.
Market watchers have described this as a decent showing at the Leonie Hill Road freehold development, given that most of the units sold were the three- and four-bedroom ones.
The units released for sale were in the South Tower. Prices start at S$3.8 million for a two-bedroom unit and go up to S$6.9 million for a four-bedroom one. PHOTO: CDL
Five agencies are marketing the project - PropNex Realty, ERA Realty, Huttons, OrangeTee & Tie, and Savills.
CDL said only 25 units were released during the private viewings on Thursday. A third of the buyers were Singaporeans and the remaining two-thirds were Singapore permanent residents and foreigners.
A spokesman said: "We are very encouraged by the positive response for New Futura. It is a highly-anticipated brand new luxury project with just 124 exclusive units on a site area of 87,000 sq ft."
The development, designed by internationally renowned architectural firm Skidmore, Owings & Merrill LLP (SOM), is a 10-minute walk from Orchard Road.
The units released for sale were in the South Tower, with prices starting at S$3.8 million for a two-bedroom unit measuring 1,098 sq ft; S$5.5 million for a three-bedroom unit of 1,830 sq ft; and S$6.9 million for a four-bedroom unit spanning 2,250 sq ft, said the agents.
The site was acquired by CDL in 2006 for S$287.3 million in a collective sale. This worked out to S$1,179 per square foot per plot ratio (psf ppr).
The project received time extensions for building completion and received its temporary occupation permit last August.
JPMorgan property analyst Brandon Lee estimated that a pre-tax profit margin of 35 per cent can be clocked, based on an average selling price of S$3,100 psf. Units in nearby projects Gramercy Park and OUE Twin Peaks were recently sold at S$2,800-S$3,000 psf and S$2,700-S$2,800 psf respectively.
Mr Lee suggested that upcoming projects in the vicinity such as 8 Saint Thomas, Paterson Collection and One Tree Hill may be launched earlier than their previously announced targeted dates to capture the positive buying momentum, and ongoing en-bloc projects may draw more interest from developers.
In the prime Core Central Region (CCR), there could be up to nine sites offering close to 1,400 units in the first half of 2018, said luxury residential brokerage List Sotheby's International Realty, Singapore.
Most consultants are expecting high-end projects to perform well this year. Lee Nai Jia, who heads research at Edmund Tie & Company, said he expects the number of foreign purchases will continue to grow.
"Firstly, the Singapore residential market is starting to recover, compared to other international residential markets, which are peaking or have peaked. Secondly, the prices of Singapore luxury residential properties, compared to those in other gateway cities such as Hong Kong, are lower," he added.
Based on his analysis of caveats lodged, purchases by foreigners (non-Singaporeans and non-permanent residents) formed about 14 per cent of non-landed homes sold in the CCR last year. It is slightly below the figure in 2016. But in absolute numbers, purchases by foreigners grew from 389 units in 2016 to 567 units last year.
According to List Sotheby's, the number of luxury apartments (above S$5 million) bought by foreigners and permanent residents in Singapore's CCR last year more than doubled to 202 units.
Leong Boon Hoe, chief operating officer of List Sotheby's International Realty, Singapore, said: "As the Singapore economy recovers and stabilises, we expect the property market to continue to grow at a steady rate, and in particular, for the luxury property sector to lead the market."
Adapted from: The Straits Times, 20 Jan 2018