Property developer Cheung Kong has set another record selling price for a residential project located in the West Coast area.
The HK developer was able to sell the entire 100 released units in the first phase of sale for the 99-year leasehold project – The Vision. Out of the total number of units sold, two penthouses went for about $3.6 million each, which works out to around $1,332 psf.
Buyers of two- to four-room units, which start from 818 sq ft in size, paid about $1,000-$1,200 psf. It also sold several strata terrace units with the highest price recorded at nearly $3.2 million.
According to Cannas Ho, the company’s sales manager, about 60 percent of the buyers were upgraders, while the remaining 40 percent were investors.
The Vision project will have a total of 14 strata terrace units and 281 apartment units.
With a strong demand in the market, Cheung Kong will put an additional 20 units of two- to four-room units on sale this coming weekend, and it plans to begin the second phase of sale by the fourth quarter. Ms. Ho noted that the company’s decision to forward releases will depend on the market response.
Several market watchers were surprised, given that the project’s asking price was higher compared to other residential projects nearby.
One of the newer launches in the vicinity was the Hundred Trees by City Developments. It has achieved an asking price of more than $1,100 psf in recent months. However, the transaction for this project mostly involved smaller units of about 484 sq ft with a 956-year lease.
The strong take-up of units for the project “shows the strong underlying demand for mass-market homes,” said Tay Huey Ying, research and advisory director at Colliers International. She added that the prices achieved in The Vision project could increase home values in the area and provide guides for property launches.
Ms. Ho pointed out that The Vision’s attractiveness is due to its “good location and first-class amenities.” The project is located across the sea and the road from West Coast Park.
One developer also felt that The Vision’s prices are not that surprising, considering its location in the West Coast area which is home to some private housing estates.
Nevertheless, several observers will keep an eye on the prices of upcoming launches in the vicinity, including Far East Organization’s 72-unit Horizon Residences freehold project in the Pasir Panjang area.