SDB Properties, the property arm of Selangor Dredging Bhd, is eyeing the premium property market in Singapore.
After it launched its first residential development in 2007 called Jia, SBD is moving forward with its second property project – Gilstead Two – located at Gilstead Road near Newton MRT station.
With a gross development value (GDV) of S$200 million, Gilstead Two comprises 110 units in a 34-storey building.
Unlike its first project, which offers larger units at sizes ranging from 1,200 sq ft to 1,600 sq ft, Gilstead Two features much smaller units. Its Type A units have an area of 904 sq ft, while Type B units are 775 sq ft.
The project has received positive response from homebuyers, with 33 units out of the 40 units released recently sold at prices ranging from S$1,900 psf to S$2,300 psf. Gilstead Two is expected to be completed by 2014.
Teh Lip Kim, managing director of SDB, said that the Singapore property market is buoyant, like other financial hub across the world. “Property prices there went down in 2008 by as much as 30% in certain areas but has picked up again to pre-crisis levels since the start of the second quarter of 2010,” she said.
The company also has a land parcel in the country, located in Balestier, which it plans to develop and launch at the end of its fiscal year.
“We are currently coming up with the concept for this development,” she said. SDB has picked Singapore as an attractive spot for its development due to several reasons.
“It is close by, so it’s easy to keep track on the progress of the developments. Singapore is the financial hub of this region and the market is open and competitive. It is relatively easy to do business there, approvals are easily obtained once all the conditions are met,” said Ms. Teh.
On SDB’s market focus, the managing director said that all its developments have been high-end projects. “This ties in with our development concepts which focus on smaller scale, more private developments. For the moment, we will continue to focus on this type of products,” she said.
“We would like to focus on developing here (Malaysia) and in Singapore for now. However, we will look into other countries if the opportunity arises and when the time is right.”