Thursday, August 31, 2006
[RealEdge] TodayOnline : It's the high end for SC Global
 This story was printed from TODAYonline | |
 | |
| It's the high end for SC Global Developer expects continued strong demand for luxury apartments here Thursday August 31, 2006 Dow Jones SC Global Developments intends to stay focused on building luxury homes in prime central locations in Singapore, despite the entry of large developers into what used to be a niche market. It also expects that there will continue to be strong demand for luxury apartments as Singapore's booming private banking business attracts more high-net-worth individuals, its chairman and chief executive Simon Cheong said. "Our focus is still very, very much Singapore. We are very confident of the high-end market," he said in a recent interview. Mr Cheong said that the recent appointment of a head of China operations at SC Global was aimed at giving the company a better feel of the market, and did not signal the start of a major thrust there. China, he said, could become a new market for SC Global a few years from now when the company is bigger. SC Global is a niche developer of high-end residences in Singapore, whose projects usually sell at large premiums to nearby developments due to the quality of the design and finishing. "SC Global is a pure play on the booming high-end residential segment in Singapore and its portfolio includes some of the most distinctive condominiums in prime districts 10 and 11," stockbrokers UOB-Kay Hian said in a report last month. SC Global recently made the headlines when it sold a 7,000-sq-ft penthouse at Boulevard Residences to now-disgraced Japanese fund manager Yoshiaki Murakami for $16 million a record price for a Singapore apartment. Apartments at Boulevard Residences sell for over $2,000 per square foot, making them one of the four or five most expensive addresses in Singapore. Other projects by SC Global include Three Three Robin in the Bukit Timah area which sold for between $1,100 and $1,450 per square foot, compared with $850 per square foot for nearby developments. Apartments at Lincoln Modern in the Newton/Novena suburb are being marketed for more than $1,000 per square foot. Mr Cheong said SC Global's strategy had always been to focus on developing residences for buyers who will pay a premium for quality finishing and an attractive physical environment, and not judge a development based on the price per square foot. "I don't want to downplay costs but in the high-end business, you cannot nickel and dime." SC Global is prepared to wait for customers who are willing to meet its higher asking prices as it believes that its developments are worth more when completed. Such an approach separates the company from other developers in Singapore which try to sell apartments "off the plan" as this allows them to receive money upfront. Turning to the broader residential property market, Mr Cheong predicted that the strong rally in luxury property prices would filter down to the middle- and low-end segments as Singapore takes steps to boost its population by encouraging immigration. Prices of luxury properties in Singapore have risen by 20 to 30 per cent over the past year due to strong foreign demand, but the broad market has remained relatively flat. The recent spate of "enbloc sales", whereby developers bought older apartments on prime land to redevelop into higher-density housing, will slow as construction costs rise and as the Government increases its development charges to reflect higher property values, said Mr Cheong. SC Global said yesterday that it had received the Strata Titles Board's approval for its $266-million en bloc purchase of the Paterson Tower. The company plans to develop it into a 24-storey residential building. | |
| Copyright MediaCorp Press Ltd. All rights reserved. | |
Real Estate News Provided Freely
You are receiving Individual Emails Change Delivery Settings
Visit Your Group | Yahoo! Groups Terms of Use | Unsubscribe
SPONSORED LINKS
.
__,_._,___
// posted by Shajahan @ 8:30 AM 