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Daintree Residence sells 50 out of 80 units in weekend launch

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Developer SP Setia moved 50 of the 80 apartments launched at Daintree Residence over the weekend, in the private property market's first new launch since the latest cooling measures kicked in earlier this month.

Singapore

DEVELOPER SP Setia moved 50 of the 80 apartments launched at Daintree Residence over the weekend, in the private property market's first new launch since the latest cooling measures kicked in earlier this month.

The first phase of the 327-unit Daintree's launch achieved an average selling price of $1,710 per sq ft (psf), the developer told The Business Times on Sunday, with two-bedders making up the bulk of apartments sold, followed by three-bedroom homes.

Neo Keng Hoe, general manager for SP Setia, called the 63 per cent take-up rate "very encouraging", adding: "We are looking at releasing over a few phases for the balance units, in view of the higher launch prices that are anticipated for the other developments along the Downtown Line."

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The price tag at Daintree was slightly under the S$1,800 psf that Mr Neo quoted ahead of the launch.

But that's not to say that the developer is holding a fire sale. Next-door neighbour The Creek @ Bukit sold out for less last year, at S$1,630 psf.

Malaysia's SP Setia snagged the Toh Tuck Road site in a government tender last year at S$265 million, or S$939 psf per plot ratio. The decision to hold back the rest of the units could reflect the expectation that rivals will go in with higher prices, as the nearby Goodluck Garden condominium was sold en bloc at S$1,210 psf in March.

Tricia Song, head of research for Singapore at Colliers International, noted in response to second-quarter private home price data last week that "we believe price expectations will be tempered by the cooling measures and unlikely to rise in the near term".

But she added that Daintree and other non-core central region launches "are arguably in less competitive locations and developers feel confident of the pent-up demand".

Speaking on Daintree's launch figures, ZACD Group executive director Nicholas Mak told BT over the phone: "In light of the cooling measures, I think this was within expectations."

A surprise round of property cooling measures took effect on July 6, with tightened loan-to-value limits and additional buyer's stamp duty hikes. But sales have not been shabby since, said Mr Mak. He pointed to Logan Property and Nanshan Group's Stirling Residences, which sold 50 units at S$1,800 psf the weekend after the measures kicked in.

SP Setia's Mr Neo said that future phases of Daintree sales should still garner a keen market: "Many discussions with buyers are still ongoing, indicating good interest in this location, near Beauty World MRT station, which has not seen a condominium launch in the recent few years."

Nine in 10 of Daintree buyers were Singaporeans, with the rest a mix of permanent residents and foreigners.