AS property prices continue to rise, so has the cost of condo showflat displays.

AS property prices continue to rise, so has the cost of condo showflat displays.

But is it getting crazy when developers are splurging millions just for show - only to tear it down in a matter of weeks?

For instance, drool over these pictures of a lavish designer showflat.

Keppel Land paid $8 million to build it.

It is possibly Singapore's most expensive showflat, industry watchers said.

The previous record was held by City Developments Ltd (CDL) - its showflat promoting upmarket St Regis Residences cost $6m.

Average prices for a St Regis unit, which was launched last year, are about $2,700 psf.

Keppel Land's latest project, Reflections at Keppel Bay, at an average unit price of about $1,900 psf, is a far cry from St Regis' prices.

Yet, this extravagant showflat is seen as a worthwhile marketing investment.

The 1,129-unit project, launched last month, will be designed by New York's Daniel Libeskind, who is known as the architect's architect in the industry.

Mr Libeskind also had a hand in designing this multi-million dollar showflat, Keppel Land said, which is why it looks like an offshoot of the designer development.

COSTLY INVESTMENT

The hefty $8m that Keppel Land spent is just the cost of constructing the temporary structure and landscaping.

It's even more expensive than most of the units it is selling.

The price tag doesn't include the uber expensive European designer furniture and fixtures in the three suites, which boast international lifestyle brands such as Hansgrohe, Miele and Starck.

There's even a Japanese baby grand piano in one of the suites.

It may look like an architectural marvel, but it won't be here for long.

Sheer wastage?

Businesswoman Christine Lee, 52, doesn't think so.

She was at the showflat with her friends and thinks it looks avant-garde from the outside.

Ms Lee said: 'The developer has to put its best foot forward. Its showflat is its best marketing tool. It is, after all, selling a lifestyle. If you dislike the showflat, you won't buy a unit.

'So it makes business sense for it to splurge on its marketing tool.'

Businessman Tay Y J, 49, said he didn't know showflats could cost so much.

'It's even more expensive than the units,' he said. 'But I guess if they're marketing a huge multi-million dollar project, it's justifiable to spend this money.'

The showflat, at 29,000 sq ft, is certainly one of the largest around with three different suites. It's about the size of 10basketball courts and took 41/2 months to build.

Knight Frank's research director Nicholas Mak said that the showflat creates awareness and is aimed at impressing well-heeled buyers.

He said: 'In this case, the developer has spared no expense in creating it. Yes, you can argue that it's excessive.

'But if the developer takes a while to sell this project, than it's a necessary expenditure in the long run.

'In the bigger scheme of things, how much is this expense compared to their potential earnings from the project?'

If you've been property hunting, you'd realise that showflats have been getting swankier and more luxurious in this buoyant property market.

All the better to lure the buyers in, some may say.

Even the Housing Board has started marketing its units using showflats in recent years, something unheard of in the early days.

For example, developer Sim Lian Group spent $1.7m on its showflat to market the hugely popular and privately-built HDB flats in Tampines last year.

Keppel Land doesn't think it is indulgent spending, since its showflat must be luxurious enough to attract its target audience - high net-worth individuals.

The unit sizes for Reflections range from 732 sq ft to 13,300 sq ft for the super penthouse.

An average three-bedroom unit at 1,109sq ft could set you back by at least $2m.

About 90 per cent of the 350 units launched so far have been sold.

The group's corporate communications assistant, Ms Catherine Tan, said it has received positive feedback about the showflat. Many visitors were simply struck by its sheer size.

'This is something that befits the property. If we're getting a world-renowned architect for the project, the showflat can't be lacking,' she said.

And if the developer has already paid a premium for the designer architect, why should they quibble over the cost of the showflat, one marketing agent asked.

Mr Colin Tan, head of research and consultancy at Chesterton International, said: 'If the selling point of this project is the design, the developer will want to show it off. And you can't capture the essence of the design just by plans and model alone.

'They'll also want to show off the 'wow' factor of this design through the showflat.'



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LIFE CYCLE OF A SHOWFLAT

1 Showflat is built by developer either as part of actual project or as stand-alone unit. Keppel Land's Reflections showflat at $8m (above and right) is probably the most expensive here so far This is something that befits the property. If we're getting a world-renowned architect for the project, the showflat can't be lacking.

2 Showflat will be opened during launch of project for prospective clients to view

3 Once the project is sold, which may take weeks, or months, showflat is demolished or sold off.

Furnishings which are on loan will be returned to shops, developer will keep the rest or reuse it GOT A VIEW?