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Successful project: City Development's 264-unit The Oceanfront @ Sentosa Cove residential condominium, launched for sale in July, has already been sold out

'With strong fundamentals in place and an economy that is growing from strength to strength, the price increase can be sustained,' City Developments group general manager Chia Ngiang Hong told XFN-Asia.

'Although the high-end residential market is still leading the upswing, we are optimistic that a broad-based recovery is underway. Hopefully, we can look forward to a price increase of 10-15 per cent next year,' Mr Chia said.

There has been a surge in demand for residential properties this year. According to estimates by CB Richard Ellis, property developers would end 2006 with total sales of 9,700 units at prices 8-9 per cent higher than last year.

In 2005, developers sold 8,955 units at prices 3.9 per cent above 2004 levels.

City Developments' projects sold well this year.

Mr Chia said their 264-unit The Oceanfront @ Sentosa Cove residential condominium, which was launched for sale in July at average price of $1,300 per square foot (psf), has already been sold out.

Another project, the St Regis Residences on Tanglin Road, has just set a new pricing benchmark of $3,050 psf, Mr Chia said.

About 100 units of the 173-unit development that is linked to the 299-room St Regis Hotel has been sold.

The project was launched in June at an average price of $2,800 psf.

To capitalise on strong demand for upscale residential projects, City Developments is launching four more such projects in Singapore as well as a 132-unit prime residential condominium in the Bukit Bintang area in Kuala Lumpur.

Among its Singapore projects is the 341-unit One Shenton apartment towers, which will rise on the site of an office building owned by City Developments on Shenton Way at the edge of the Raffles Place business district.

Following the success of The Oceanfront @ Sentosa Cove, Mr Chia said, City Developments also plans to launch the 236-unit Quayside Collection at Sentosa Cove.

Other projects to be launched next year include a 59-unit residential project on the prime Stevens Road area and a 110-unit development that will rise on the site of Kim Lin Mansions on Grange Road near the Orchard Road shopping belt.

While the group's projects are confined to the high-end segment of the housing market, Mr Chia is hoping that demand will spill over into the middle-end.

'In our land bank, we do have middle range sites such as Tampines and Pasir Ris in the East, Parkview site in the West, including our recent acquisition, Lock Cho Apartments in the Thomson locality,' Mr Chia said.

'We are in an advantageous position to launch these projects when the time is right. Some of these projects could be launched next year,' he said.

City Developments has one of the biggest land bank among developers here, totalling 4.6 million square feet with an allowable gross floor area of 9.1 million square feet.

Mr Chia said City Developments was continuously looking for potential acquisitions and may also consider redeveloping other commercial properties into residential projects in the future. - XFN-ASIA