With the launch of "The Residences at W Singapore" at Sentosa Cove this weekend, there will be more options for home seekers in the high-end property market.
Market watchers expect property developers to release more of such projects in the coming months, with luxury homes touted to be the leading performers in 2010.
This could drive up collective sales and run down their land bank later in the year.
The launch of "The Residences at W Singapore" at Sentosa Cove indicates that developers are preparing for a rebound in luxury property segment.
City Developments has priced its residential units there at $2,500 psf to $3,000 psf, at the high end of recent luxury launches.
With demand rebounding for the high end luxury market, developer City Developments said it is considering to expand its presence in the segment.
“We had a very strong proportion of luxurious apartment during the 2006-07 period and subsequently we were concentrating quite a bit on the middle class and the upgraders. But now we are coming back to the luxury category. In fact, the prices here are about 20-25% below the 2007 peak, and we believe the sentiments are very positive now,” said Mr. Chia Ngiang Hong, group GM at City Developments.
Values of properties from the mass and mid-tier segments are now about five percent to eight percent above the peaks of 2008.
Analysts said the high end is likely to catch up this year, mostly when Marina Bay Sands, the second integrated resort, is open for business.
Developers are likely to grow their presence in the luxury market to capitalize on increasing prices, analysts added.
“By and large, we are seeing a trickling effect of take-up… Probably (by) the second half of this year… we’ll see the major luxury market starts to get sold out and developers will start to look at replenishing the land bank process,” said Donald Han, marketing director at Cushman & Wakefield.
However, market watchers said that residential rental prices should be the first to recover in order for prices of luxury residential property values to rise.
To date, rental prices have already started picking up in selected areas by five percent to 10 percent, said Cushman & Wakefield.