Posh condo on sale amid weak market

Source : Straits Times - 9 Jul 2008

A LUXURY condominium that lets residents park their cars right in front of their high-rise units has been released for sale at a price analysts consider rather steep, given the quiet market.

The Hamilton Scotts project - it has special lifts to bring the cars to the desired floor - will likely be listed at an average of $3,800 per sq ft (psf), said developer Hayden Properties yesterday.

That will price the 52 regular units of about 2,700 sq ft at between $8 million and $12 million each. The 30-storey freehold condo in Scotts Road also has two junior penthouses of about 3,200 sq ft and two penthouses of around 7,100 sq ft.

Market insiders say the condo could be priced between just under $3,000 psf to over $4,000 psf, while one market watcher says it could have fetched between $3,500 and $4,500 psf last year.

However, the $3,800 psf average price is still relatively high given the cooling market for luxury homes.

There are several posh projects in the pipeline, but developers have been holding back launches amid the uncertain climate.

The luxury segment has taken a big hit after the dizzying highs hit last year. Prices are down about 10 per cent with falls of a further 5 to 10 per cent expected by the end of the year, said Savills Singapore.

The only other major luxury development released for sale this year was the 100-unit Nassim Park Residences. More than half the units have been sold since May, with prices averaging $3,000 psf.

‘Hayden is probably keen to take advantage of this quiet period to launch, after the release of Nassim Park Residences and before the Hungry Ghost Festival,’ said Savills director of marketing and business development Ku Swee Yong.

Knight Frank’s director of research and consultancy, Mr Nicholas Mak, believes The Hamilton Scotts has enough appeal to defy the trend somewhat: ‘There will still be takers as it is a unique product. But this is the time for mass market projects.’

The recent pickup in launches was almost all in the mass market or mid-tier segment.

Hayden managing director Ong Chih Ching said it should be able to get offers if the project is priced correctly. However, it would not sell if the price is not right.

‘We are previewing it and not launching it because this is not the right climate to launch,’ said Ms Ong, who added that Hayden has temporarily halted sales at its ultra- posh Ritz-Carlton Residences until the mood improves.