CITY Developments Ltd (CDL) and UOL Group seem to have struck a chord with home buyers with their latest condo previews.
CDL has sold 96 of the 120 units released in the first phase of its 368 Thomson condo, as at 5pm yesterday. The average price is $1,350 per square foot for the 36-storey freehold condo in District 11. The project comprises 157 units. CDL said it is releasing more units progressively to cater to demand.
Over in the Toh Tuck/Jalan Jurong Kechil area, UOL released 85 units at The Terrene on the former Rainbow Gardens site and as at 10pm yesterday, had sold about 50 units. The average selling price for the five-storey, 999-year leasehold condo is about $1,250 psf. The project comprises 172 units. UOL is developing the condo jointly with LaSalle Investment Management.
Developers of both projects began sales to their respective staff/directors and former owners of the sites on Thursday, followed by previews to other buyers yesterday.
CDL said prices of 368 Thomson range, in absolute dollar quantum, from $918,000 for the 689 sq ft one-plus-study units to $4.4 million for the 3,391 sq ft, five-bedroom penthouses.
The 96 units sold include all 62 two-bedders in the development and about 12-15 one-bedders as well as one of the condo's two penthouses.
DMG & Partners analyst Brandon Lee described CDL's pricing as 'reasonable and in line with current prices in the area', given that newish projects in the area are fetching between $1,250 and $1,450 psf.
Agreeing, a seasoned property consultant noted that prices of new condos in the Newton area, which is closer to Orchard, are hovering around the $1,700-2,000 psf range.
A back-of-the-envelope calculation shows CDL stands to book pre-tax profit of about $70 million from 368 Thomson. This is the third condo the group is developing in the location. Its first, The Arte at Thomson, was previewed in March last year at an average price of $880 psf, followed by Cube 8 in January this year at $1,250 psf on average.
CDL said that about 75 per cent of buyers at 368 Thomson were Singaporeans, with the rest comprising permanent residents and other foreigners - mainly from Malaysia, Indonesia, China and Hong Kong.
'With its prime District 11 location, freehold status and attractive pricing, 368 Thomson represents an excellent investment opportunity and also good rental potential,' said CDL's group general manager Chia Ngiang Hong.
UOL and La Salle Investment Management on the other hand are targeting primarily owner-occupiers for The Terrene.
'The majority of units sold are two-bedroom apartments, followed by three bedders. Seven penthouses have also been sold,' said Knight Frank managing director (residential services) Peter Ow. Buyers mostly have addresses in the surrounding area - districts 21 (such as Upper Bukit Timah) and 23 (which includes Bukit Batok and Toh Tuck) and comprise a mix of HDB flat dwellers and private home dwellers.
'Most of the buyers are locals,' he added. The 85 units released are priced between $920 psf and $1,480 psf. Knight Frank is marketing Terrene jointly with Jones Lang LaSalle.
The project's 172 units range from one bedders (starting from 506 sq ft) to five-bedroom penthouses (up to 3,025 sq ft).
Source: Business Times, 10 Jul 2010