Keppel Land’s latest development in Tiong Bahru is drawing significant buyers’ interest, but how that translates to sales remains to be seen.
Some property agents said more than 300 cheques have been collected since prospective buyers were invited to a preview of Highline Residences in Kim Tian Road about a week ago.
Submitting a blank cheque to the developer even before the pricing of the units is finalised to show serious buying intent is an industry norm, but this does not necessarily lead to actual buying.
The showflat was, however, crowded when The Straits Times visited at about 4.30pm yesterday.
Many buyers were described by agents as investors who are keen on the smaller units, particularly, the one- and two-bedroom types.
The 500-unit development is being marketed at an average price of $2,000 per square foot (psf), but industry players noted that with discounts thrown in, the average price could dip to $1,900 psf at launch.
The asking price for one-bedders is estimated to be between $1 million and $1.2 million; two-bedders between $1.25 million and $1.6 million; three-bedders between $1.6 million and $2.5 million; and four-bedders between $2.4 million and $2.8 million. Six penthouses are likely to be priced at about $5 million each, agents said.
“(The) initial take-up should be quite good because of its location in Tiong Bahru, but don’t expect too much in today’s market,” said Chestertons managing director Donald Han. Recent launches have seen a take-up rate of 30 to 50 per cent of the units released, he noted.
New launches nearby include the 469-unit The Crest and the 429-unit Alex Residences. Both were launched for about $1,600 psf to $1,700 psf and have sold less than 50 per cent of their units.
Mr Chris Low, 39, a foreign exchange trader, noted that the indicative prices at Highline Residences were “a bit high” for a 99-year-leasehold project.
He was at the Highline Residence showroom yesterday to look at the two-bedders, but said that he would prefer to wait as property prices are likely to ease further.
Another prospective buyer, who wanted to be known only as Mrs Chan, said she hoped the developer would absorb the cost of the additional buyer’s stamp duty owing to the tepid property market.
“Discounts would be a major incentive, especially if they’re really intending to push sales,” she said.
The project is expected to launch on Sept 13, and only units in two 36-storey blocks are likely to go on sale.
This article was first published on September 08, 2014.