Tag Archives: Goodwood Residence

Buyers shun luxury city apartments despite price falls

Luxury apartment sales in the city centre sank markedly in the first half of 2014, revealed a CBRE report.

According to caveats data for the Core Central Region (CCR), there were 48 transactions of properties costing $5 million and above in the first six months of the year, compared to 78 and 107 deals in H2 2013 and H1 2013 respectively.

CBRE attributed the drop in sales over the past year to the TDSR framework which took effect at the end of June 2013.

At the same time, foreign buyers who used to be big players in Singapore’s prime residential market, appear to be retreating since the ABSD was raised to 15 percent.

Purchases by foreigners plummeted to 14 units in H1 2014 from 35 the year before.

Weak market conditions have also put pressure on prices, with the average price of completed luxury apartments at $2,800 psf, down slightly from $2,825 psf at end-2013.

Helped by the sale of 16 units at Goodwood Residence after factoring price discounts and rebates, the average price for new developments was $2,400 psf.

As at end-June, three luxury residential projects were completed, namely Tomlinson Heights, TwentyOne Angullia Park and Le Nouvel Ardmore. But the report noted that approximately 70 percent of the 167 units from these developments remain unsold, on top of 300 unsold units from other projects completed over the last one to two years.

To help close deals, CBRE said: “Some developers are looking for bulk purchasers while others are seeking to attract buyers via direct discounts and ABSD rebates. With prices softening, sales volume might see improvement in H2 2014.”

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GuocoLand posts loss of $13.3mil for Q1

GuocoLand said the group incurred a loss of $13.3 million for the third quarter ended 31 March 2013. This was mainly because additional construction cost was recorded for Goodwood Residence and Sophia Residence in the current quarter. Estimated completion cost for the two projects have increased as a result of the change in the projects’ main contractors. Nonetheless, both projects remain profitable.

During the current quarter, revenue for the quarter fell 12% to $92.4 million from $104.5 million a year ago.

In addition, independent valuations were carried out on the group’s investment properties, leading the group to recognise a net fair value gain of $31.8 million from its investment properties in other income.

Administrative expenses for the current quarter reduced by 21% as compared to the previous corresponding quarter. The decrease was mainly due to share option expenses written back for lapsed options and lower general expenses.

Meanwhile, GuocoLand also unveiled details of its first integrated mixed-use development in Singapore at the white site above Tanjong Pagar MRT station. Named Tanjong Pagar Centre, the 290-metre development will be Singapore’s tallest building.

Slated for completion in 2016, the centre will be anchored by a soaring tower housing premium office, retail and residential homes, linked to a luxury business hotel. With floor space totalling 1.7 million square feet, the integrated development will include:

  • Guoco Tower, a 38-storey, Grade A office block.
  • TP180, offering prestigious and limited collection homes above Guoco Tower, offering sea and city views.
  • Six levels of premium retail and F&B space integrated with Tanjong Pagar MRT station.
  • A luxury business hotel linked to the main tower.
  • A City Room integrated with the Tanjong Pagar City Park will be a vibrant community space for recreation and events.

Source : TheEdge – 2 May 2013