MCC's Tampines condo likely to be priced at S$900-1,200 psf
Singapore
SINGAPORE-BASED Chinese developer MCC Land is opening its showflat for 626-unit The Alps Residences this Saturday, with sources saying that the 99-year leasehold condominium project in Tampines will be priced in the range of S$900-1,200 per square foot (psf).
It is also marketing the upcoming launch of Queens Peak at Dundee Road for HY Realty. This 736-unit project near Queenstown station is likely to begin sales next month.
The two projects have a significantly higher number of units than the originally estimated 490 units and 645 units respectively.
MCC Land had in May last year secured the Tampines site for S$227.78 million or S$483 per square foot per plot ratio (psf ppr) - a bid seen as defensive by property consultants at that time to protect the pricing power for its nearby condo project The Santorini where it had sold close to 40 per cent of the 597 units by the end of August. It had paid S$562 psf ppr in July 2013 for The Santorini plot.
R'ST Research director Ong Kah Seng noted that based on his estimated breakeven price of S$930 to S$980 psf for The Alps Residences, this leaves a net profit margin of up to 10 per cent.
The said price range is "highly attractive, and reflects competitive pricing by the developer to attract buyers in face of weakened market conditions and enduring impact of the total debt servicing ratio", Mr Ong said.
SLP International executive director Nicholas Mak reckoned that the launch price for The Alps Residences has to be competitive given its distance from the nearest MRT; it also has to be comparable to The Santorini, where the latest transactions last month ranged from S$1,000 to S$1,192 psf. He is estimating a breakeven level of S$920-960 psf for The Alps Residences.
The Alps Residences is located near the amenities and business cluster of the Tampines Regional Centre and Our Tampines Hub, an integrated community and lifestyle hub that is slated to open in phases from this year to 2017. An upcoming park connector and cycling route is also shaping up near The Alps Residences.
Commenting on the Swiss-inspired design theme for The Alps Residences, MCC Land managing director Tan Zhiyong said that a Swiss architectural firm has been engaged to "create a cosy tropical home with Alpine inflections".
The architectural firm is group8asia, a Swiss-owned company with offices in Geneva, Singapore and Hanoi. It was earlier involved with Aedas in designing Waterway Terraces - the first public housing development along the upcoming Punggol waterway - which incorporated many eco-friendly features.
The one-bedroom units at The Alps Residences range from 441 sq ft to 463 sq ft, two-bedders from 689 sq ft to 700 sq ft, while three-bedroom units are from 936 sq ft to 1,087 sq ft. There are also four-bedroom units, four-bedroom penthouses and five-bedroom-plus-study penthouses.
Judging from the unit-mix with two-thirds of the units being one or two-bedroom (plus study) units, the developer may be "hoping that investors will bite", Mr Mak said.
For HY Realty's Queens Peak, the 736 units will also spread across one to five-bedroom units and single-level penthouses with private pools.
HY Realty had acquired the Dundee site for S$483.18 million in June last year for S$871 psf ppr. This is by far the most luxe project for owners and directors of HY Realty, Du Zhenzeng and Wen Baoguo, who also own Hao Yuan. They are said to be using HY Realty as a vehicle to move from suburban projects into the city-fringe.
Other residential projects in the launch pipeline include Forest Woods in Lorong Lew Lian by City Developments Limited and Parc Riviera at West Coast Vale by EL Development.
