Hong Kong developer Cheung Kong unveiled on Wednesday its latest residential property project in Singapore.
The development, Thomson Grand, will be located in Upper Thomson.
It will comprise a total of 361 units.
Thomson Grand is slated for completion in November 2018.
Its launch is expected early July.
The condominium occupies a land area of about 225,000 square feet.
Of the 361 units, 339 are apartment units and 22 are strata terrace units.
Cheung Kong said it will release 50 apartment units in its first phase of sales next month.
The initial target price is S$1,400 per square foot.
Some 64 per cent of the apartment units comprise three to four bedrooms.
Cheung Kong said the rationale behind this is to satisfy the pent-up demand for spacious and sizeable homes.
Cheung Kong said it is not concerned about the large supply of land coming on in the suburban areas in Singapore.
This is because it is not competing with local developers in the mass market sector.
Cheung Kong Holdings executive director Justin Chiu said: “We don’t want to, and I think we cannot compete with them for the local mass market. So that’s why every development we have on the residential side, we will go for the niche market”.
Cheung Kong said it is looking for opportunities in the office and retail property sector in Singapore.
Analysts believe this is due to the higher returns in the office property sector.
Cushman & Wakefield vice-chairman Donald Han said: “Some of the foreign developers have been fairly successful in converting its predominant sector from residential – a good example would be Lippo – and now moving into the commercial, office as well as the hospitality segment -increasing its share of it.
“And I suspect that’s on the back of strong fundamentals for the office sector, because rents are moving upwards, and vacancy is close to about three per cent”.
Analysts expect rents in the office property sector to go up by 15 per cent over the next 12 months.
Source : Channel NewsAsia – 22 Jun 2011