Keppel Land confident of homebuyers’ interest

By Lin Zhiqin

/ EdgeProp |

December 26, 2017 8:03 AM SGT

One of the projects homebuyers can look forward to is the upcoming condominium at Serangoon Gardens that is slated to be launched in 2018. “We are confident of the development’s potential and interest from homebuyers,” says Ng Ooi Hooi, president of Keppel Land Singapore. He expects the condo to be well-received as it is located in the established Serangoon Garden estate.

Keppel Land, along with joint-venture partner Wing Tai Holdings, put in the top bid of $446.48 million, or $965 psf per plot ratio, for the highly contested Government Land Sales (GLS) site located at Serangoon North Avenue 1 on July 27, which saw a total of 16 bids submitted.

According to Keppel Land, the plan is to develop over 600 homes on the 1.7ha site, which has a 99-year lease. Families with children will appreciate its proximity to the reputable schools in the vicinity, says Ng. There is also a host of amenities in the area, including Chomp Chomp Food Centre, Serangoon Food Market, Serangoon Garden Country Club and retail mall NEX. “There have also been few new condos launched in recent times in the vicinity,” adds Ng.

The condo at Serangoon Gardens is slated to be launched in 2018

Image source: URA

Another reason for Keppel Land’s confidence could stem from the steady sales at its other projects. In 9M2017, a total of 300 units were sold at Keppel Land’s projects such as Corals at Keppel Bay, Reflections at Keppel Bay, The Glades and Highline Residences.

All 726 units at The Glades have been sold. The condo, which is billed as a contemporary eco-resort, won the Landscape Excellence Award at the inaugural EdgeProp Singapore Excellence Awards ceremony on Oct 23. Keppel Land also walked away with the Top Developer Award while Corals at Keppel Bay emerged as the People’s Choice from the crowd of more than 30 nominated developments.

Highline Residences is designed by Mok Wei Wei of W Architects, a President’s Design Award laureate. The project located close to the Tiong Bahru MRT station has seen strong demand, with sales in October ringing in at 24 units and another 21 units sold in November, according to URA data on developer sales. Keppel Land says there are about 50 units still available at the 500-unit Highline Residences, as at mid-December.

Investors who want to diversify overseas can also look forward to the launch of Cove Residences, which is Phase 3 of Empire City, a project in Vietnam’s Ho Chi Minh City by a consortium comprising Keppel Land, private equity firm Gaw Capital Partners, and Vietnamese developers Tien Phuoc JSC and Tran Thai Real Estate Co. According to Keppel Land, 156 apartments at Cove Residences will be launched in 1H2018. Empire City is a mixed-use project comprising residential, retail and office components that sits on a prime 14.6ha waterfront site in the Thu Thiem New Urban Area in HCMC. Phase 1 of Empire City, the 510-unit Linden Residences, was launched in December 2016 and Phase 2, comprising the 478- unit Tilia Residences, was launched in July 2017. According to JLL Vietnam, both phases have seen strong demand, with almost all the units sold within the first few weeks of launch.

According to Ng, Keppel Land sees Vietnam as a growth market. On Dec 18, the company entered into agreements to acquire two prime sites in HCMC that will yield about 1,550 homes. The projects, which have a total development cost of US$297 million ($400 million) will add to the developer’s pipeline of more than 20,000 homes in Vietnam. Keppel Land says it sold a total of 1,010 homes in Vietnam in 9M2017, a fourfold increase y-o-y. About 620 apartments at Velona @ SSC, which is the first phase of Saigon Sports City, are also slated for launch in 1H2018.

Another of Keppel Land’s growth market is Indonesia, says Ng, where “we are strengthening our presence in Greater Jakarta”. The Riviera, Keppel Land’s latest landed housing project located in Tangerang, was recently launched. “Sales of our West Vista project have also been steady,” adds Ng.

Besides Singapore, Keppel Land’s other core market is China, where it is focusing on five cities: Shanghai, Beijing, Tianjin, Chengdu and Wuxi. “Our launch-ready units are mostly from Seasons Garden in the Sino-Singapore Tianjin Eco-City, as well as Waterfront Residences and Park Avenue Heights in Wuxi,” says Ng.

Keppel Land sold 3,790 homes across the globe in 9M2017, an 8% y-o-y increase. The total sales value also grew to $2 billion, compared with $1.6 billion in the same period in 2016. “Being geographically diversified has served Keppel Land well,” says Ng. “We will continue to strengthen our presence [in our existing markets], while seizing opportunities in other emerging markets and gateway cities.”

In 9M2017, a total of 300 units were sold at Keppel Land’s projects, including Corals at Keppel Bay and Reflections at Keppel Bay

In addition to the site at Serangoon, Keppel Land’s landbank in Singapore includes two land plots of 28,759 sq m and 43,701 sq m beside Corals and Reflections at Keppel Bay. Ng says Keppel Land is also reviewing plans for Keppel Towers and Keppel Towers 2. The towers are located close to the Tanjong Pagar MRT station and have a total net lettable area of 39,958 sq m. They could be redeveloped into a mixed-use project to capitalise on the growing demand for city living and the transformation of the Tanjong Pagar area into a premium waterfront precinct, says Keppel Land.

According to Ng, Keppel Land will continue to look for more land from the GLS sites and the private market. “We remain focused on seeking sites with good value propositions and will grow our landbank only if there are good risk-adjusted returns,” he says. “Both in Singapore and overseas, we remain open to collaborations with like-minded partners who share our commitment in developing quality projects.”

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