Developers looking to lease unsold units of new developments

With the prices of high-end properties moderating, some developers are looking to lease unsold units of new developments for better returns.

Keppel Land said it will tap on the strong leasing demand for luxury water front residences and lease 154 units of its high-end condominium – Reflections at Keppel Bay.

These will be set aside as corporate residences and rents will range between S$8,000 to S$9,000 per unit.

Augustine Tan, President (Singapore Residential) at Keppel Land, said: “We believe that with a good following of tenants in the Caribbean, we will see an equally, if not a better following for Reflections.

“As Reflections matures, the quality would ensure that the price would hold, and in fact the price would appreciate by the time we intend to sell the 150 units that we are holding now.”

Reflections is not the first development that Keppel chose to lease instead of selling some units. Some 130 units at the Caribbean Residences in the Keppel Bay vicinity had been leased out as corporate residences ranging from six months to two years.

839 units at Reflections at Keppel Bay have been sold as of end February. That is 88 per cent of the 950 launched units.

Six units were sold after the cooling measures were implemented, with half of them going to foreigners, and one to a PR.

Source : Channel NewsAsia – 22 Mar 2012

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