CDL heading to Indonesia to promote Gramercy Park

Singapore

CITY Developments Limited (CDL) is holding roadshows in Jakarta this weekend for its freehold condominium project Gramercy Park in Singapore's District 10, followed by Surabaya the following weekend.

This is part of a marketing effort to raise awareness of the project, which will be launched soon, in regional markets including China and Hong Kong. CDL has appointed DTZ, Huttons, Savills and Luxury Real Estate, a partnership between JLL and PropNex, as the marketing agents.

BT understands that CDL is promoting only one of the two towers in the 174-unit project in Grange Road, suggesting that it is still looking to offload the other tower through a bulk sale. The project is subject to extension charges for unsold units under the qualifying certificate (QC) conditions from the second quarter of 2018.

Its showflat here will open on Monday for private previews by potential buyers. Pricing of units is slated to be released to agents soon.

Last weekend, OUE Limited conducted a launch event for OUE Twin Peaks costing over S$100,000 in Kuala Lumpur and offered star-buy units to potential buyers there, with agents reporting positive response.

GuocoLand's Wallich Residence at Tanjong Pagar Centre, for which CBRE and DTZ are the marketing agents, may also be promoted in overseas markets such as Malaysia, Indonesia, China and Hong Kong, BT understands.

The 181-unit project, which sits on the highest floors of Singapore's tallest building when completed, is slated to obtain temporary occupation permit in the third quarter.

It is usual practice for developers to take their high-end projects to overseas markets, with Indonesian buyers still highly sought-after. While the tax amnesty plan of Indonesian President Joko Widodo to encourage the well-heeled to bring money back to the country is seen as having an impact on Indonesians' overseas investments, agents note that there are still projects that would appeal to Indonesian buyers.

CapitaLand's Cairnhill Nine, for one, saw strong interest from Indonesian buyers, with top foreign buyers also hailing from Malaysia and China. The company had gone to Jakarta over a weekend in February to market the project.

"The traditional Indonesians tend to favour properties in prime districts and with freehold tenure," said KF Property Network managing director Tan Tee Khoon. "The new generation of Indonesians are more open to other districts and even leasehold properties. They appear to have a preference for new launches or newly completed projects that are offered to them first rather than the remaining unsold units."

Business dealings, proximity to Singapore and hedging against their currencies' depreciation are also reasons why Indonesians and Malaysians are keen to invest in Singapore real estate, he said.

Agents also note that there has been increased interest among Malaysians to invest in Singapore since the ringgit's plunge and ensuing political uncertainties.

Notwithstanding the 15 per cent additional buyer's stamp duty applicable to foreign homebuyers, steep discounts dangled for high-end homes have helped to sweeten the deals.

OUE is offering steep discounts of 15 per cent off the price list and creative schemes under private treaties. One is a deferred payment scheme for which a price discount of 12 per cent applies, and the other is a scheme that allows for a longer option exercise period.

Since last weekend, Wheelock Properties is said to be offering a 15 per cent rebate under an "ABSD Assistance" scheme for buyers of its completed project, Ardmore Three. It has sold some 12 units of the 84-unit project since the launch in late 2012. The project is subject to extension charges for unsold units from the fourth quarter under the QC conditions.