The Seaview Collection condo in Sentosa Cove will comprise two eight-storey blocks of 125 residences.
VENTURING into Singapore's luxury residential property market is set to enhance IOI Properties Bhd's brand and reputation as a quality home developer in Malaysia and Singapore.
IOI Properties executive director Datuk Lee Yeow Chor is excited about the company's two projects in Sentosa Cove that would pave the way for more ventures across the causeway over the next two years.
The two projects will be undertaken with its Singapore joint-venture partner, Ho Bee Investment Ltd, which is involved in four other projects in Sentosa Cove.
“We are confident that the projects will do well as there are no more land for condominium projects in Sentosa Cove.
“The 5.3-acre land parcel that we successfully tendered for in January is the final piece of condominium land to be launched by Sentosa Cove Pte Ltd,” Lee said.
He added that the acquisition of the land has just been concluded and it would be the site for its second project, The Pinnacle Collection, which is one of the two condominium parcels that flank the entrance of the marina leading into Sentosa Cove.
Lee said the scheduled completion of the Genting group's integrated resort development on Sentosa Island next year would spawn a greater demand for more quality homes in Sentosa Cove.
“Sentosa Cove, a world-renowned exclusive residential development, is now about 50% completed while another 20% of the projects are now ongoing. It has attracted many high net worth buyers from around the world,” Lee said.
The Pinnacle Collection, comprising a 20-storey block of 250 luxury condominium units, will be launched by the end of next year.
The Pinnacle residences will have an average built-up of 2,000 sq ft. The building designs for the project are still being finalised.
Meanwhile, the company's first project in Sentosa Cove, the Seaview Collection, will comprise two eight-storey blocks of 125 residences on 3.6 acres.
Construction will start in the third quarter of this year and the project will be launched for sale by the end of the year.
Analysts look at IOI Properties' venture into Singapore positively.
A recent CIMB Research note said that as the company's profits were the largest compared with other Malaysian developers, IOI Properties had no choice but to seek new avenues for growth to see a significant impact on its bottom line.
“We view positively its choice of joint-venture partner as Ho Bee has carved a niche in high-end residential development projects on Sentosa Island.
“IOI Properties is one of the few Malaysian developers with the balance sheet to take on Singapore-scale projects,” it said.
CIMB Research said although the Singapore property market was highly competitive, “values are significantly higher than in Malaysia”.
“Assuming an average selling price of S$3,000 per sq ft, the sales value of the Seaview Collection condominiums alone is a mind-boggling RM2.4bil, which is equivalent to a medium-sized township that would easily take 10 to 15 years to complete.
“The break-even cost for the condominiums is estimated at S$1,900 per sq ft,” it said.
The margins for the Pinnacle project should also be good as the break-even cost is around S$2,400 per sq ft while the targeted selling price should be closer to S$3,500 per sq ft, the research house added.
By The Star