Luxury property market still has room to grow: developer

Luxury property market still has room to grow: developer


SINGAPORE : There is still room for the luxury segment of the Singapore property market to grow.

This is the view of Chyau Fwu Development, the builder and owner of Art Deco development Parkview Square.

The developer, which is now preparing to launch its first residential project in Singapore, said this was an opportune time to roll out apartments that can appeal to the ultra-rich from the region.

In reply to a query in parliament on Monday, the government said that despite rising prices in the super luxury property market, there was no indication of a property bubble forming.

National Development Minister Mah Bow Tan said, "It is evident that prices and take up of private housing are rising sharply only in the Core Central Region. In other parts of Singapore, the increase is steady and is supported by economic fundamentals."

Developers like Chyau Fwu agree.

They said that even at present prices, luxury properties in Singapore are still attractive.

Eddie Chow, Senior Executive, Chyau Fwu Development, said, "The Singapore luxury market is still comparatively low in Asia, particularly when compared with cities like Hong Kong. Of course if the market continues to grow and to rise in terms of price, one day there will be a certain limit. Nevertheless, I see within the next 12 months or so, the limit is not reached yet."

While the typical three-bedroom unit ranges from 1,500 to 2,000 square feet in size, Chyau Fwu is offering something different with Parkview éclat.

Mr Chow said, "We find that it does not really fit into the definition of luxury. So we have then decided that we want to build something starting with 3,000 square feet, and of course upwards. Only when you have reached that kind of space, we can start talking about luxury."

The 35-apartment luxury development along Grange Road will feature three-bedroom units of at least 3,000 square feet.

And Chyau Fwu said the price of S$3,000 per square foot set by St Regis was a realistic reflection of market demand.

It believes there is room for prices to climb.

The developer said it planned to launch the project sometime within the first half of this year, and pricing would be determined closer to the launch date.

But it is believed that the pricing will be more than S$3,000 per square foot, which means the smallest unit is going to cost close to S$10 million. - CNA/ms