Three new high-end residential projects in the prime Orchard Boulevard area are expected to be completed over the next two years.
They include luxury development 21 AngulliaPark – a Hong Kong-based China Sonangol’s first Singapore property project.
TwentyOne AngulliaPark and [email protected] Boulevard are expected to receive their temporary occupancy permits at around end 2013 and Boulevard Vue at around 2015.
Still, China Sonangol is confident that its targeted clientele will not be deterred by Singapore’s latest round of cooling measures.
Luxury property developer S.C. Global’s high-end development The Marq on Paterson Hill has been completed for more than a year, but nearly half of its units are still unsold.
But the developer of neighbouring project TwentyOne AngulliaPark is undaunted by the rising inventory levels in the Orchard area… even with the recent cooling measures in Singapore.
Hong Kong-based China Sonangol Group set up its Singapore property arm in 2008 and is currently developing two residential projects in Singapore.
The company says it may also be adding commercial properties to its portfolio.
Mr Alain Fanaie, CEO of China Sonangol Group, said: “We believe that they are going to be limited to time and there are temporary ones. We don’t believe it is going to affect substantially our types of clients we are targeting.”
The Sino-Angolan developer bought the the District 9 plot from Overseas Union Enterprise at S$283 million in December 2009.
Real estate analysts are expecting this development along Orchard Boulevard to fetch around S$,4000 to S$5,000 per square foot.
Mr Colin Tan, CEO of District 65 Pte Ltd, said: “We must always have a situation where there are more homes than people so that we can ease the population growth.That is something I believe will happen over time. So, I think this China developer is also predicting the same thing that this oversupply will ease as more and more super rich around the world come over.”
Experts say this niche group of buyers are not chasing investment yields, but are attracted by the opportunity to own a freehold property in Singapore’s prime Orchard Road shopping belt… much like how some investors are buying into the exclusivity of Sentosa Cove.
Mr Alan Cheong, Director of Research and Consultancy at Savills, said: “That’s the traditional playground for the Indonesians in Orchard Road – Districts 9, 10, 11. Sentosa Cove – because this is a leasehold – natural although the quantum of investment is large, but it appeals more to the first generation businessman where money is easily made and easily lost.”
Still, some analysts feel smaller units in business districts like Shenton Way may offer better rental yield and capital gains.
Source : Channel NewsAsia – 25 Jan 2013