ALL eyes will be on Daintree Residence when it launches for sale on July 28 - the first condominium to do so since the latest round of cooling measures came into effect.
But the pricing has left analysts divided: the Toh Tuck Road condo will likely go in the region of an average of S$1,800 per square foot (psf), Neo Keng Hoe, general manager for the developer SP Setia, told The Business Times.
Previews began last weekend, with 3,000 people coming through the showflat. These include upgraders and young families, Mr Neo said.
There is a lack of new launches in the area in the last few years, he said. The last was the retirement resort project The Hillford in 2014. Proximity to the Beauty World MRT and schools in the Bukit Timah area will also likely boost homebuyer demand, he added.
"The pricing is reflective of current pricing norms, set by the strong growth of land prices over the last year," said Christine Li, head of research and consultancy at Cushman & Wakefield.
"But considering that pricing at some suburban launches has already surpassed S$1,600 psf, Daintree's pricing seems reasonable and should receive a warm market response, notwithstanding the recent slew of cooling measures."
Next door, the 260-unit The Creek @ Bukit sold out in December last year with a median selling price of around S$1,630 psf.
The freehold Goodluck Garden on Toh Tuck Road was sold this year en bloc at around S$1,210 psf, but Ms Li said the future launch price could exceed S$2,000 psf.
But some analysts thought Daintree's price was on the high side. International Property Advisor chief Ku Swee Yong said that while the location and convenient public transport are a draw, "there are choices in the area that are not at this price", he said.
These include resale options such as the 999-year The Terrene @ Bukit Timah, where a 549 sq ft unit transacted in May this year for S$1,457 psf, according to Realis data, he said.
Investors could also look to the large number of upcoming launches across the country, he added.
SP Setia had secured the 201,517 sq ft site for S$265 million or S$939 per square foot per plot ratio (psf ppr) in a government tender in April 2017 that drew 24 bids.
UOL's The Tre Ver in Potong Pasir will open its showflat for previews starting this weekend. Word on the street is that it will go for upwards of S$1,400 psf.
Park Colonial in Woodleigh has closed its showflat doors last Sunday, and is likely to capture new upside after nearby projects launch.
Jointly developed by Chip Eng Seng's property arm CEL Development, Heeton Holdings and KSH Holdings, it sold 310 of its 805 units at an average S$1,730 psf the night before the latest cooling measures came into effect. It is 51 per cent sold as at the time of closure, with its Phase 1 completely sold out.
Meanwhile, agents told BT that Tripartite Developers' The Jovell on Flora Drive as well as City Developments and IOI Group's South Beach Residences have postponed until further notice previews initially slated for last weekend.
A Hong Leong Group spokesperson would only say: "We are reviewing the plans for the launch of South Beach Residences and The Jovell."
Adapted from The Business Times, 21 July 2018.