PRICES of luxury homes may be surging to new highs but they are still selling like hot cakes, with recently launched high-end projects almost completely sold out.
City Developments (CDL) has sold about 95 per cent of its Oceanfront @ Sentosa Cove since the 257-unit waterfront condominium was launched two weeks ago, while its ultra-posh St Regis Residences is left with only about 30 of the 100 units released for sale.
Oceanfront is fetching more than $1,400 per sq ft (psf), up about 3 per cent from its original launch price. The 174-unit St Regis is averaging between $2,600 and $2,700 psf, with some units hitting highs of more than $3,000 psf.
Another CDL project, Residences @ Evelyn in the Newton area, has had more than 70 units taken up out of the 106 units released in late May at an average price of $1,240 psf.
At Keppel Land's 157-unit Ritz Residences on Devonshire Road, which it started selling in April, about 80 per cent of the 117 units released so far have been snapped up at an average price of at least $1,400 psf.
Other luxury projects are expected to come on the market soon, such as Hong Leong Holdings' 85-unit Tate Residences on Claymore Road and CapitaLand's Scotts HighPark next to the Newton MRT station.
CapitaLand said it would launch its 73-unit development within this quarter. Market-watchers have suggested that the project will be priced in the region of $1,300 psf.
Despite their soaring prices, high-end homes remain good investments: Both the capital values and rents of such properties have risen steadily.
Average capital values of luxury apartments went up by 4.6 per cent in the second quarter this year to hit $1,580 psf, while those of prime freehold condominiums climbed by 3.2 per cent to $910 psf, according to a report released last week by property consultancy DTZ Debenham Tie Leung.
It added that monthly rents of high-end homes in prime residential districts have also increased, by 5.5 per cent in the three months from April to June to average $12,500.
This leasing demand is being driven by companies - especially those in the fast-expanding financial and services sectors - hiring more senior expatriates, DTZ said.
'Similarly, prime rents are expected to continue to increase, with new completions in the high-end segment and lifestyle-driven developments taking the lead.'
Foreign buyers continue to account for a large proportion of the strong demand for luxury homes, making up 45 per cent of all purchases at the highest end, where prices exceed $1,115 psf, said property consultancy Colliers International.
The proportion is even higher for selected top-tier residences. At St Regis, 65 per cent of the buyers are foreigners; the figure is said to be 80 per cent for Far East Organization's Orchard Scotts. fiochan@sph.com.sg
