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CITY Developments, which launched its upmarket development The Oceanfront@Sentosa Cove yesterday, said that it will develop another three high-end apartment projects within two years - to capitalise on increasing prices in the luxury residential market in Singapore.

Hot property: Developers of upmarket condo The Oceanfront, (from left) Chia Ngiang Hong, group GM of CDL, Kwek Leng Joo, MD of CDL and Chishu Zushi, MD of TID Pte Ltd, flash smiles of confidence

The three new developments will be on sites in the prime district. They are Kim Lim Mansion, for which CityDev paid $251 million ($996 per square foot of potential built-up area) in 1999; Boulevard Hotel, which was closed down in 2000 to make way for a plush condominium; and Lucky Tower in Grange Road, which cost the company $383 million ($1,134 psf of potential gross floor area) in May this year.

CityDev has held on to the first two sites for more than five years, and is now poised to benefit if the recovery in the luxury residential market continues to grow. Most apartments at its premium St Regis Residences in the Tanglin area cost between $2,600 and $2,700 psf.

CityDev's managing director Kwek Leng Joo said that the company will be able to get better prices for the three developments in a few years' time. 'Even if we are in the position to launch another three luxury projects today or tomorrow, we don't want to do it because we believe that the market still has something more to do,' said Mr Kwek at the media launch of The Oceanfront.

The property developer is bullish on demand for the new project - suggesting that all units in the first phase of the launch could be sold out even before the planned overseas marketing campaigns are launched.

BT understands that some of the units in The Oceanfront have already seen firm indications of interest, and some parties are keen to acquire entire floors. Out of a total of 264 units, 100 are on offer in this round. The units are priced at $1,300 psf.

The development, which will be completed in 2010, comprises five towers ranging from 12 to 15 storeys. Most of the apartments will be 3 or 4-bedroom units of between 1,647 sq ft and 4,284 sq ft. The development will also have 29 penthouses, the most expensive of which is expected to sell for more than $8 million.

The project's strongest selling point is its location. Tucked away in a corner of Sentosa, half the units will have sea views while the other half will face the marina.

'Sentosa is increasingly becoming a popular investment destination for good reasons,' said Mr Kwek. 'In terms of the costs to the investors, we are still some distance away from major gateway cities.'