The Parisian condominium located at Angullia Park is going to change hands again after less than three years when it was collectively sold, but this time at a much higher price.
The Overseas Union Enterprise (OUE) purchased the freehold site in December 2006 for $228.1 million, and resold it for $283 million. The said site was valued at around $261.1 million.
The selling price of its gross floor area works out to around $2,058 per square feet, making it the third most expensive private unit ever sold. The Westwood Apartments in Orchard Boulevard at around $2,525 per square feet and The Ardmore at Ardmore Park at $2,337 per square feet are the most expensive ones.
The buyer is China Sonangol Land, an associate firm of China Sonangol International Holdings. It’s a wholly-owned gas and oil company which is also involved in infrastructure and reconstruction projects.
The break-even price works out to around $2,500 to $2,600 per square feet, said property consultancy firm CB Richard Ellis (CBRE), who also brokered the deal. The completed units can be sold in the region of around $3,500 per square feet, depending on its launch date, CBRE said.
This was the first purchase made by the Chinese company in Singapore but it would not be the last, said Executive Director for investment properties of CBRE, Mr. Jeremy Lake. “We believe they are still interested in Singapore, and once this project has proven successful, they may look for other sites here.”
Several industry watchers noted the deal may trigger interest in the luxury home market in Singapore, which was subdued during the global recession and financial crisis as foreign buyers withdrew their deals.
Two integrated resorts are expected to be completed by next year and it could attract large numbers of foreign buyers by 2010 and 2011. Some overseas developers like China Sonangol Land are now positioning for a potential high-end market, said Nicholas Mak, a real estate lecturer from Ngee Ann Polytechnic. “It looks as though it is still foreigners who are willing to pay high prices currently.”
However, in such a segment of the property market, in which the recent land sales are gloomy, deals of The Parisian become a “fresh reference point” for a prime land price, said Mr. Lake. This would give hope to developers still standing on to the luxury land in the Orchard area.
While sales demonstrate the developers’ appetite for high price returns, Mr. Lake doesn’t expect that many similar deals would happen after this, as most developers purchase land from the government or through an en bloc sale.
Additionally, transactions like The Parisian are rarely seen because OUE had already demolished the condo and started piling works on the site.