{"id":111050,"date":"2019-09-25T10:53:25","date_gmt":"2019-09-25T03:53:25","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/two-tales-at-recent-condo-launches\/"},"modified":"2019-09-25T11:06:30","modified_gmt":"2019-09-25T04:06:30","slug":"two-tales-at-recent-condo-launches","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/two-tales-at-recent-condo-launches\/","title":{"rendered":"Two tales at recent condo launches"},"content":{"rendered":"


\nDespite the slim profit margin, the developers of Cuscaden Reserve and The Antares probably deemed it better to launch the projects now considering the significant supply.\u00a0However, both GuocoLand and Low Keng Huat had enough room to price their projects more attractively and sell more units at launch.\u00a0
\nFour new private residential projects that were recently put on the market registered tepid sales, with Cuscaden Reserve moving five units and Meyer Mansion 21 units.
\nThe other two, Uptown@Farrer and The Antares sold 12 and 17 units, respectively.
\nMost analysts believe that pricing for the projects was on the high side, as developers paid high land prices for some of the sites acquired towards the end of the land-buying cycle that started in mid-2016 and ended in early July last year, when the government unveiled its latest round of cooling measures, reported The Business Times.
\nURA Realis data showed that the five Cuscaden Reserve units were sold at a median unit price of $3,341 per sq ft (psf) \u2013 which is not far off the price for new freehold luxury prime-district projects.
\nAt Boulevard 88, for instance, 73 units were sold at a median price of $3,662 psf, while the 14 units sold at 3 Orchard By-The-Park achieved a median price of $3,621 psf.
\n3 Cuscaden, on the other hand, sold 72 units at a median price of $3,534 psf.
\nThe developers of Cuscaden Reserve \u2013 SC Global Developments, New World Development and Far East Consortium \u2013 clinched the 99-year leasehold site in April 2018 at a state tender for $2,377 psf per plot ratio (psf ppr). According to analysts, this works out to a breakeven cost of $3,100 psf, leading to a profit before tax margin of around eight to 10 percent.
\nThe Antares\u2019 developers \u2013 a joint venture between Hock Lian Seng Holdings, Keong Hong Holdings and TA Corporation \u2013 acquired the Mattar Road site at the same tender for $1,109 psf ppr. With the breakeven cost at about $1,560 psf, the profit margin stood at around 14 percent.
\nWith this, the 17 units\u2019 $1,794 psf median price is deemed too high for a relatively untested location.
\nBut despite the slim profit margin, the developers of Cuscaden Reserve and The Antares probably deemed it better to launch the projects now considering the significant supply from projects in the pipeline which are yet to be launched.
\nIt was a different story for the two other projects.
\nGuocoLand sold 21 units at Meyer Mansion at a median unit price of $2,728 psf. The freehold site was acquired by GuocoLand at $1,580 psf ppr, which translates to a breakeven cost of $2,200 psf \u2013 offering a comfortable profit margin of 25 percent.
\nUptown@Farrer\u2019s developer, Low Keng Huat, also enjoyed a 24 percent margin. Based on Realis data, the 12 units were sold at $1,860 psf, Low Keng Huat clinched the site at a state tender for $1,001 psf ppr in January 2017, or during the early part of the land-buying cycle. Analysts estimate the breakeven cost at around $1,500 psf.
\nBoth GuocoLand and Low Keng Huat had enough room to price their projects more attractively and sell more units at launch.
\nBut despite the weak economy, the developers did not expect private home prices to correct and that they would be able to sell off their respective projects over a period of time.
\nLooking to buy a Singapore home but not sure where to start? Get insight on the best locations for your new home with our\u00a0AreaInsider\u00a0Guides.
\nVictor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0victorkang@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Two tales at recent condo launches<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Despite the slim profit margin, the developers of Cuscaden Reserve and The Antares probably deemed...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-111050","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-sT8","jetpack-related-posts":[{"id":108496,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cuscaden-reserve-to-preview-in-q3-2019\/","url_meta":{"origin":111050,"position":0},"title":"Cuscaden Reserve To Preview In Q3 2019","date":"June 27, 2019","format":false,"excerpt":"\r Cuscaden Reserve, a luxury condominium project of SC Global Developments, New World Development and Far East Consortium at the heart of Orchard Road, is expected to open for private previews in the third quarter of 2019. At 117 metres tall, the 192-unit project at 8 Cuscaden Road features one-,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":111632,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-home-sales-hit-a-14-month-high-in-september\/","url_meta":{"origin":111050,"position":1},"title":"New home sales hit a 14-month high in September","date":"October 16, 2019","format":false,"excerpt":"\r Developers sold 1,270 private homes in September, driven by several new launches, including Avenue South Residence, which sold 361 units.\u00a0 \u00a0\u00a0 With developers revving up launches following the Hungry Ghost month, new private home sales in Singapore soared to its highest level in September since July 2018. Urban Redevelopment\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":102353,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/private-home-sales-rebound-in-november-amid-surge-in-new-launches\/","url_meta":{"origin":111050,"position":2},"title":"Private home sales rebound in November amid surge in new launches","date":"December 18, 2018","format":false,"excerpt":"\r Artist\u2019s impression of Kent Ridge Hill Residences, a new condominium located right at the edge of Kent Ridge Park. Singapore saw developers\u2019 sales soar 146 percent month-on-month to 1,198 units (excluding executive condos (ECs)) in November, on the back of healthy demand for several new launches. On an annual\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":74514,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/govt-unveils-land-sales-programme-for-h1-2018\/","url_meta":{"origin":111050,"position":3},"title":"Govt unveils land sales programme for H1 2018","date":"December 14, 2017","format":false,"excerpt":"\r Six confirmed list and nine reserve list sites will be launched under the H1 2018 Government Land Sales (GLS) programme, announced the Urban Redevelopment Authority (URA) on Wednesday (13 December). These land parcels could potentially yield approximately 8,045 private homes and 63,960 sq m in gross floor area (GFA)\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":74508,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/govt-unveils-gls-programme-for-1h-2018\/","url_meta":{"origin":111050,"position":4},"title":"Gov\u2019t unveils GLS Programme for 1H 2018","date":"December 14, 2017","format":false,"excerpt":"\r Six confirmed list sites and nine reserve list plots will be launched under the 1H 2018 Government Land Sales (GLS) Programme, announced the Urban Redevelopment Authority on Wednesday (13 December 2017). These land parcels can potentially yield a total of around 8,045 private dwellings and 63,960 sq m in\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":70532,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/chong-kuo-and-cuscaden-road-sites-released-for-sale\/","url_meta":{"origin":111050,"position":5},"title":"Chong Kuo and Cuscaden Road sites released for sale","date":"October 31, 2017","format":false,"excerpt":"\r Aerial view of the residential site at Chong Kuo Road off Sembawang Road. 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