Good pricing a draw at new launch

CAPITALAND’S latest condominium project along Orchard Road, Cairnhill Nine, has seen strong interest, with cheques received for a sizeable number of its total 268 units.

Indonesians represent a significant portion of the potential buyers, The Business Times has learnt. Interested buyers submit a cheque to register their interest and secure units they are keen on, but this may not necessarily translate into successful sales eventually.

CapitaLand staff had visited Jakarta over the Feb 20-21 weekend to market the project to Indonesian clients, and returned reporting good interest. It had planned to also visit other Indonesian cities like Surabaya and even Hong Kong if it was unable to finish selling the units by the end of March.

The official launch is slated for mid-March. CapitaLand is holding another round of viewings this weekend by appointment. Upcoming executive condo include The Visionaire EC, Wandervale EC,  Parc Life EC while existing ones include The Terrace EC, Brownstone EC, Waterwoods EC, Signature at Yishun, Skypark Residences, The Vales EC, The Criterion EC, Bellewaters EC, Bellewoods EC.

“Cairnhill Nine will officially launch in two weeks’ time on 12 March 2016. It is premature for us to comment on the interest or cheques collected during the VIP preview,” a spokesman from CapitaLand Singapore said.

In a note to clients,Tata Goeyardi, director of Asean sales at Religare Capital Markets, said that Indonesians favour the project’s direct connection linkage to Paragon, which has a medical centre above the shopping mall. The project is also near Mount Elizabeth Orchard hospital.

This is a 99-year leasehold project. Mr Goeyardi added that Indonesians don’t usually mind leasehold projects, unlike Singaporeans who have a clear preference for freehold properties.

The good pricing was a draw, with units averaging S$2,400 to S$2,500 per square foot (psf), and as low as S$2,200 psf for the bigger units.

Prime freehold properties are trading at S$2,600 to S$2,700 psf on average in the vicinity.

The units are also generally of a good size for an affordable dollar value. Its one-bedroom units (with and without guest room) range from 592 to 969 sq ft. Its two-bedroom units (with and without guest room) range from 1,033 to 1,324 sq ft. Its four-bedroom units range from 1,528 to 2,013 sq ft.

He added: “What surprised us is the willingness of Indonesians to purchase, even with the 15 per cent additional buyer’s stamp duty for foreigners. This has created a new hope for the residential market in Singapore.

“The official sales number is not out yet, but to be honest, this project does bring a lot of attention due to its location and lower pricing among our Indonesian friends. It has been a long time since Indonesian friends would call us and ask for specific projects.”

Whether these enquiries are project-specific remains to be seen, although it could spell the start of property market buzz returning, he said.

As for another high-end condominium nearby, City Developments’ (CDL) yet-to-be-launched Gramercy Park at Grange Road, BT had earlier reported that the 174-unit freehold project has received unsolicited interest for one of the two towers.

At the group’s latest results briefing, group general manager Chia Ngiang Hong had said a “reasonable” price should be around S$3,000 psf.

The project is subject to qualifying certificate extension charges for unsold units from Q2 2018 onwards.

The project is nearly completed and Mr Goeyardi said it is one of three projects that CDL could look to inject into its fund management platform in due course.

The other two projects are Nouvel 18 (with Wing Tai) and New Futura.

executive condo photo 4