As other property developers deliberate if they will launch new projects this year or hold back until next year, MCL Land and Ho Bee have already decided to launch their newest project, Parvis condo located at Holland Hill.
According to a property consultant, the selling price for the units is quite fair considering its location. The consultant who is not responsible for marketing Parvis said the units could easily be sold at an average of $1,500-1,600 psf.
85 units from the 248-unit condo will be released and the selling price will range from $1,400 psf to $1,600 psf. Overall, prices are between $1.62 million for a two-bedroom unit with an area of 990 sq. ft. and $3.02 million for a four-bedroom unit with an area of 1,991 sq. ft.
The project covers three blocks at the former Holland Hill Mansions site, which the two companies bought in 2006 for $750 psf per plot ratio or a total of $292 million.
Market watchers believe the project’s breakeven cost could reach $1,200 psf. Assuming an average selling price of $1,480 psf for the entire project, its pre-tax profit could reach up to $120 million, said some analysts.
The Parvis condo is the second joint project between Ho Bee and MCL Land. Their partnership began when they developed the 716-unit Rio Vista condo in 2001, which was completed after three years.
MCL Land alone is developing a 608-unit condo project on a 99-year leasehold plot at the nearby Yishun MRT Station, close to Singapore Orchid Country Club/Golf Course and in front of Lower Seletar Reservoir.
MCL paid $350 psf ppr for the said site through a state tender in March the previous year. The project, called The Estuary, will be launched at the end of the year but it is more likely to be released in the first quarter next year, said Koh Teck Chuan, MCL’s CEO.