Hor Kew Corporation expects a turnaround for the company with the launch of two new property developments at 42 East Coast Road and 66 Kallang Pudding

Hor Kew Corporation expects a turnaround for the company with the launch of two new property developments at 42 East Coast Road and 66 Kallang Pudding, it said yesterday.

This is in addition to One Oxley Rise, which the company developed as well. Hor Kew, a building construction group which has been in the red in previous years, expressed optimism for its new developments.

‘These are turnkey projects for the company. In the past, we have mainly concentrated on construction projects. Now, Hor Kew will undergo a facelift and move on the next level of expanding our property development business,’ said group financial controller Lau Choon Hoong.

The company believes that it will be able to ride on the recent property boom and expects both new developments to do well. The increase in number of expatriates and immigrants, together with the recent integrated resort projects, will continue to sustain the property market for another two to three years, the company expects.

The development at 42 East Coast Road is a 17-storey freehold project situated next to Paramount Shopping Centre and Paramount Hotel, which was recently up for sale at around $200 million. With a total saleable area of 64,200 sq ft, it will comprise a mix of apartments, duplex units, penthouses and commercial units. Hor Kew estimates that units might sell at around $1,500 per sq ft. The property will be launched later this year or early next year.

Mr Lau cites the properties’ prime locations as one of the drawing factors. 66 Kallang Pudding, a high-tech industrial development, is in close proximity to Aljunied MRT and a 10-minute drive from the city.

Although Hor Kew intends to lease the 47,000 sq ft development, it is also open to selling its units. Estimated prices lie between $3.50 and $4 per square feet for rental and $550 to $600 per sq ft for sale. Construction is expected to start early next year.

Although not available on the market yet, both properties already have ‘a long list of potential buyers’, according to Mr Lau.

One Oxley Rise, Hor Kew’s other property development, has received 87 per cent of bookings, of which 81 per cent are secured sales. The average selling price now is $2,000 per sq ft, the company said.

Source: The Business Times, 27 June 2007