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St
Regis Residences sets new record high of $3,000 psf
St Regis Residences along Tanglin Road
has set a new benchmark of $3,000 psf for property prices - 25 per cent
higher than the previous record of $2,400 notched in the mid-1990s.
 
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| Mr Kwek: Says
an investor from the Middle East wanted to buy one of the
residential towers. The deal did not go through but option is still
open |
More than one transaction has been done
at this price, said Kwek Leng Beng, City
Developments Ltd (CDL) executive chairman, at the $6 million
showflat opposite the St Regis site yesterday.
So far, CDL has launched 50 units of the
173-unit development and 38 have been sold at an 'early bird special' with
an average price of $2,500-$2,600 psf. This works out to about $10 million
for a 4,000 sq ft four-bedroom apartment. Prices will probably increase
later to the 'preferred average price of $2,800 psf'.
About 60 per cent of the buyers are
foreigners.
Mr Kwek said that one investor from the
Middle East even wanted to buy one of the two 23-storey residential towers.
The deal did not go through but CDL group
general manager Chia Ngiang Hong said that the option was still open.
CDL also received offers to buy the
20-storey hotel tower but this, Mr Kwek said resolutely, 'was not for sale'.
And perhaps with good reason. The
development banks on the international appeal of the St Regis brand name,
which is owned by Starwood Hotels and Resorts. Among other amenities, the St
Regis Residences will be offered the hotel's noted butler service.
In response to a query on the
similarities with another 'branded' condominium, The Four Seasons Park,
Starwood president (Asia-Pacific) Miguel Ko said that the two developments
are not comparable.
Mr Ko, who himself lives at The Four
Seasons Park, said that he was taken by the luxury brand association but
pointed out that an underground link that was meant to connect the hotel to
the residences never materialised. 'You can't send the butler across the
street,' he added.
The St Regis management offers a leasing
service for owners who want rental returns. The details of this service have
not been confirmed but it has led one property consultant to ask if CDL is
'just selling hotel rooms'. Still, even if it is, this seems to be what the
jet set wants. The same consultant conceded that St Regis Residences is a
'unique product that justifies its asking price'.
Wallace Chu, Savills Singapore head of
research, does not expect to see a buying frenzy, unlike the case at CDL's
The Sail @ Marina Bay. Not only is St Regis being sold 'by appointment
only', he points out, 'CDL will be targeting a specific market'.
Merrill Lynch analyst Sean Monaghan
expects CDL to reap a huge profit from the St Regis project, but he still
maintains a 'neutral' call on the stock.
He said that he is not too shocked by the
asking prices either. 'It was a shock 18 months ago with the Sail.'
- by Arthur Sim SINGAPORE
BUSINESS TIMES 2 June 2006
TANGLIN PARK CONDOMINIUMS
Freehold,
need we say more?
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