Singapore’s luxury property market showing signs of recovering

More than 55 per cent TG Development’s The Peak @ Cairnhill II sold during its launch in January 2017.
Singapore, 13 February 2017 – TG Development Pte Ltd (“TG Development”), has sold 34 out of 60 units at The Peak @ Cairnhill II during its launch in January 2017. This bring its total take-up rate to date to more than 55 per cent. The units were sold on an average price of S$2,700 per sq ft.
“The luxury marketing is indeed showing signs of improvement in 2017. We are heartened by the good take up rates of our development as reflected by the 34 units sold to date,” said Ong Boon Chuan, Managing Director of TG Development.
Indeed, the Urban Redevelopment Authority’s (URA) third and fourth quarter of 2016 data showed that similar high-end developments such as OUE Twin Peaks and Gramercy Park registered good take-up rates.
According to caveats lodged on the URA’s Realis system, 55 and 8 units at OUE Twin Peaks and Gramercy Park respectively were sold in the fourth quarter of 2016. For the whole of 2016, 237 and 44 units were sold at OUE Twin Peaks and Gramercy Park respectively.
Additionally, 647 condominium units were sold in the prime districts of Sentosa Cove, Orchard Road, Newton and Bukit Timah for the whole of 2016. This is the only area that saw prices for non-landed private homes increasing by 0.1 per cent in the same quarter.
“This shows quality developments such as ours can still move amid the challenging property market in Singapore. Buoyed by market confidence, we felt this was opportune time to launch The Peak @ Cairnhill II and our results speak for themselves,” said Ong.
Located on the exclusive enclave of Cairnhill Circle, this luxurious development is located within the vibrant retail enclave of Orchard Road, Singapore’s premiere shopping belt and tourism destination.
The Peak @ Cairnhill II comprises 58 two-bedroom and two-bedroom penthouse units. Of the 58 units, 28 units measure 904 sq ft while another 28 units measure 829 sq ft. Meanwhile, the two-bedroom penthouse units are generously sized at 1,884 sq ft and 1,864 sq ft respectively.
“Our good take up rates was due to the Enhanced Deferred Payment Scheme. In fact, most of the units were sold through this scheme.” said Ong.
Under the Enhanced Deferred Payment Scheme, buyers will only need to pay a 20 per cent option fee. They also will be given a two year period to exercise the option-to-purchase. In the meantime, they sign a master tenancy agreement with the developer which allows them to rent out the unit and get rental income. 
The developer is currently offering a 12 per cent discount and absorbing two years of maintenance fees as well as property tax for buyers.

Editor’s note:
Singapore’s property market analysis and trends
Singapore’s property market had faced a challenging year in 2016 due to a number of government cooling measures such as the Additional Buyers’ Stamp Duty (ABSD), Sellers’ Stamp Duty (SSD) and Total Debt Service Ratio (TDSR). 
These measures had resulted in a further decline of 0.5 per cent in the private property index (PPI) from 137.9 points in the third quarter to 137.2 points in the fourth quarter. This is less than the 3.7 per cent decline recorded in 2015. Transactions also increased by 9.4 per cent with 8,136 units sold in 2016 compared to the 7,440 unit recorded in 2015.
Interestingly, the prices for non-landed private properties located in prime areas (CCR) was the only one showing an uptrend. They increased by 0.1 per cent  in the fourth quarter signalling a renewed interest in high-end properties. Meanwhile, those in the Rest of Central Region (RCR) and Outside Central Region (OCR) decreased by 2.0 per cent and 0.6 per cent respectively.
Additionally, URA’s data also showed that developers launched 2,944 uncompleted units (excluding executive condominiums) in the fourth quarter of 2016 more than the 1,609 units in the previous quarter. There were also more units sold in the fourth quarter at 2,316 units compared to the 1,981 units sold in the previous quarter.
For the whole of 2016, developers launched 7,877 units. This was around 800 units more than the 7,056 units launched in 2015. Developers also sold 7,972 units in 2016. This was much higher than the 7,440 units sold in 2015.
“Collectively, these data showed that the private property market is making a signifiant recovery,” said Ong.
Freehold properties did well versus leasehold
Additionally, caveats captured on URA’s Realis system showed that of the 699 resale units sold for the entire 2016, 694 of the units sold were freehold properties. This represents some 99.3 per cent of the market share.
“URA’s finding is not surprising as freehold developments are extremely scarce and very much sought after in Singapore. Astute investors will be pleased to know that our development The Peak @ Cairnhill II is a freehold property sitting on a prime piece of land on Orchard Road,” said Ong.
More foreigners buying private properties 
2016 also saw a significant rise of foreign investors as a number of them saw it as a good time to pick up prime properties. 
Figures from Jones Lang Lasalle (JLL) during the first nine months of 2016 showed there was an 11.7 per cent increase in foreign investors (not including permanent residents) compared to the same period last year. In all, they accounted for some 782 transactions as of November 2016.
Additionally, data from the URA showed that Chinese investors made up the major buyers followed by Indonesians, Malaysians and Americans.
JLL’s data also showed that Malaysians and Indonesians preferred buying properties in prime areas with 40 percent and 68 per cent of their property purchases respectively located in the prime districts. 
“The Peak @ Cairnhill II has been designed with such discerning foreign buyers in mind. This presents the perfect opportunity for them to invest in prime properties. For example, it features spacious master bedrooms, a private lift for every unit. Meanwhile, the overall architecture and interior design have been well thought of with well-lit and well ventilated living spaces,” said Ong.

About The Peak @ Cairnhill II
The Peak @ Cairnhill II is a freehold 18-storey luxurious development by TG Development comprising 60 exquisitely designed units.
Located within the prime Orchard Road district, The Peak @ Cairnhill II is just a stone throw’s away from Singapore’s vibrant shopping enclave which is home to a number of high-end boutiques and malls such as Paragon, ION Orchard and Mandarin Gallery.
The Peak @ Cairnhill II enjoys easy access to the rest of the island via Orchard and Somerset MRT stations. The former will serve as an interchange station to the Thomson-East Coast Line by 2021. For those driving, the development is easily accessible via the Central Expressway (CTE).

About TG Development 
TG Development was incorporated in 1987 and is headquartered in Singapore. Helmed by its Managing Director, Ong Boon Chuan, TG Development has gone from strength-to-strength backed by a panel of renowned architects.
The developer has a strong track record in designing bespoke residential developments to suit the metropolitan lifestyle of the most discerning buyers. Its projects include The Oliv, SkyPark @ Somerset, Lloyd SixtyFive as well as exclusive bungalows on Sentosa Cove. 
The Oliv and SkyPark @ Somerset, in particular, have won a number of industry-related awards. 
They include the following:
The Oliv 
President Design Award – 2015 
SIA Building of the Year – 2014 
MIPIM Awards Best Residential – 2014 
Skypark @ Somerset
SIA Award – 2011
For more information, please visit