A 1,776 sq ft unit on the 11th floor of Ardmore Three was sold for $5.60 million, which translates to $3,152 psf, according to a caveat lodged on April 15. Based on caveats lodged, this brings the latest tally of units sold to eight out of 84 in the freehold luxury condominium tower by developer Wheelock Properties, at an average transacted price of $3,329 psf.
However on April 13, the developer started offering buyers a 15% discount and a 15% ABSD rebate under the “ABSD assistance package” to offset the additional buyer’s stamp duty. This means the effective purchase price of units will be from $4.54 million or $2,540 psf. According to marketing agents, the offer only applies to units from the 9th to the 20th floors, and will be for a limited period only.
Word on the street is that there has been a flurry of sales since this special offer was made a fortnight ago, and it will be evident in the caveats lodged in subsequent weeks.
Wheelock Properties is said to have moved a number of units at Ardmore Three
over the past fortnight with its 15% discount and ‘ABSD assistance package’
Ardmore Three was completed in 4Q2014, which means all the units have to be sold by end-2016 so that the developer will not be hit by extension charges under the conditions of the Qualifying Certificate (QC).
Last month, developer OUE offered two alternative schemes to buyers of its 462-unit OUE Twin Peaks on Leonie Hill Road: a straight 15% discount for selected units with prices starting from $2,300 psf, or the option of purchasing with a deferred payment scheme, with units starting from $2,700 psf. That created a stir in the market. Two recent caveats for the 99- year leasehold OUE Twin Peaks saw buyers opting for the straight discount. A 549 sq ft, one-bedroom unit on the third level fetched $1.29 million ($2,350 psf), according to a caveat on April 19, while one floor above, another 549 sq ft unit was sold for $1.26 million ($2,300 psf) on April 8.
OUE Twin Peaks’ creative payment schemes are
said to have drawn buyers to the 99-year leasehold
project on Leonie Hill Road
Although the caveats have not been lodged yet, the developer is said to have sold quite a number of units under the deferred payment scheme, according to a property agent. The merit of this scheme is that a buyer only needs to pay a 20% down payment, and the remaining 80%, two to three years later. “If the market is bad, they can just walk away from the deal, although [it means] they will have to forfeit the down payment,” he says.
City Developments Ltd has started overseas roadshows of Gramercy Park, its 174-unit luxury condo development on Grange Road, which is scheduled to obtain its Temporary Occupation Permit in 2Q2016. Under the QC conditions, CDL has another two years to sell the units at Gramercy Park.
JLL and Savills have brought the project to Jakarta and Surabaya, while Singapore Christie’s International Real Estate will be showcasing it in Hong Kong over the weekend of May 7 and 8. The freehold Gramercy Park has a mix of two- to four-bedroom units, sized from 1,184 to 3,122 sq ft. There are also five-bedroom penthouses spanning 5,534 to 7,287 sq ft. Indica tive prices are in the range of $2,600 to $2,800 psf. This means the starting price of a two-bedroom unit is $3 million.
“These days, if you want to buy a decent-sized two-bedroom unit in a freehold condo in the prime districts, it will be hard to find anything below $3 million,” says Joseph Tan, executive director of CBRE Residential Services.
The strong performance at CapitaLand’s 99-year leasehold Cairnhill Nine on Bideford Road, just off Orchard Road, in March has revived the interest of both local and overseas investors looking for condos in the prime districts, says Ku Swee Yong, CEO of Century 21. Launched at an average price of $2,500 psf, Cairnhill Nine is priced to sell, he adds.
With Cairnhill Nine’s successful launch, the creative payment schemes offered for OUE Twin Peaks and attractive discounts offered at Ardmore Three, Ku expects more developers to roll out marketing campaigns to entice buyers.
This article appeared in the City & Country, Issue 726 (May 2, 2016) of The Edge Singapore.