THE trend of record-breaking prices for luxury homes in the heart of Orchard Road is spilling over to surrounding areas such as Newton and the Singapore River, with prices hitting new highs for some new projects there.
CapitaLand yesterday said it achieved prices of at least $2,000 per sq ft (psf) for two of the four penthouse units it has sold in its high-end Scotts HighPark at Scotts Road, located next to the Newton MRT Station.
One unit, a 4,209 sq ft duplex penthouse that is part of the project's 37-unit 'penthouse series', fetched more than $2,200 psf, said Ms Patricia Chia, the chief executive of CapitaLand's Singapore residential division.
This comes a day after the property giant said a record price of $1,700 psf was fetched for a unit at another of its properties, the RiverGate condominium by the Singapore River.
The prices achieved by Scotts HighPark are now comparable to those fetched by other projects in the Scotts Road/Newton area at the property market peak of 1996 and 1997, while RiverGate's prices have surpassed previous records, property consultants told The Straits Times yesterday.
While CapitaLand's condominiums are currently topping the price stakes in these areas, other developments are also seeing prices climb as home buyers flock to projects that are a stone's throw away from Orchard Road but considerably cheaper.
Two other projects in the Newton area - City Developments' (CDL's) Residences @ Evelyn and Lippo Group's Newton One - are selling at average prices of $1,200 psf to $1,300 psf.
In comparison, prices of projects in traditionally swankier areas such as Ardmore, Draycott, Tanglin and Cairnhill now range between $1,500 psf and $2,000 psf, while units at CDL's St Regis Residences are busting all records at above $3,000 psf.
Other, less conventional residential areas just off Orchard Road are also enjoying strong demand. At Mohamed Sultan Road, CDL's The Pier @ Robertson is being priced at around $1,100 psf, about 20 per cent higher than its average price of $900 psf when the project was launched in 2003.
And in nearby Kim Seng Road is Wheelock Properties' 228-unit The Cosmopolitan, which has seen prices rise by 5 per cent to 8 per cent since its official launch last October, to hit up to $1,400 psf.
Next door is a 280-unit condominium by Lippo that will be launched by early next year at prices even higher than The Cosmopolitan, Mr Thio Gim Hock, the executive director of Lippo Realty (Singapore), said yesterday.
Robust demand for homes in these areas is partly driven by a spillover effect from booming demand for luxury Orchard Road condominiums, he said.
'Prices in Orchard Road have risen so quickly and so high that people are now looking just outside Orchard for more affordable homes,' he added.
But 'for a development to achieve record prices, it cannot just depend on spillover demand', said Mr Nicholas Mak, the director of research and consultancy at Knight Frank.
He added that 'there are many other factors that lead to a project hitting benchmark prices, including its orientation, design, facilities and fixtures'.
For instance, he noted that CapitaLand's 40-storey RiverGate is much taller than the neighbouring developments - including Watermark and The Pier, which are both only 10 storeys high - meaning that RiverGate can command better views.
'A high-rise condo in Orchard Road would be just one of many similar projects, but if you put it in another area that is generally more low-rise, it really stands out,' he added.
Part of the demand in the Singapore River area could also be the result of the rejuvenation of the district, which has become an attractive waterfront alternative close to the city, said
Dr Chua Yang Liang, the head of Singapore research at Jones Lang LaSalle.
'There is latent demand waiting in these non-traditional areas, and developers are now offering more options for buyers,' he said.
fiochan@sph.com.sg
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