A unit at The Sail @ Marina Bay, a luxury development

Source: Business Times, 4 Mar 2010

According to CB Richard Ellis (CBRE), prices of new luxury residential projects in Singapore could increase by a further 10-15 per cent this year while rentals may increase by 5-10 per cent. Already, in the first 2 months of this year, prices have been climbing steadily, CBRE said.

For instance, 88 Urban Suites units were sold at an average price of $2,500 psf while 35 units of The Laurels were sold between $2,500 to 2,900 psf. More luxury projects are scheduled for release in the first half of 2010, which include Ardmore 3, Nassim 8 and those on the sites of Grangeford and Parisian.

Before that, the Singapore residential property launch will continue to teem with activity in various market segments.
 
A 27-storey freehold condo with a total of 196 units will also be released this week by Hong Leong Holdings , with prices starting from $2,000 psf. In fact, 118 units have been sold since its first launch in early 2008 and the development is expected to receive Temporary Occupation Permit (TOP) in September this year.

A 200-unit Waterscape At Cavenagh will also be having its official launch this week with an average selling price of about $1,880 psf. Hong Leong Group could also release a 202-unit project on the former Ong Building site at 76 Shenton Way later this month. In a few weeks, Nathan Suites a 24-storey project at Nathan Road,is also expected to preview.

Thus, CBRE has pointed out that this could be the start of a revival in the luxury market segment. With less impulsive buyers and more cooling measures being implemented, it is unlikely to see runaway prices that had happened in 2007 in which average launch prices of new luxe projects jumped to $2,000-4,000 psf.