All 20 units of luxury development sold

26 Mar 2021
Property News
Eden stands at the corner of Draycott Park and Draycott Drive; its facilities include a swimming pool, children's pool, landscaped garden and sky garden. PHOTO: SWIRE PROPERTIES

Singapore

SWIRE Properties of Hong Kong announced on Thursday night that it has sold all 20 units at its completed freehold luxury apartment development, Eden, at 2 Draycott Park for S$293 million. (see amendment note)

The price works out to S$4,827 per square foot. All 20 apartments in the project are four-bedroom units of over 3,000 sq ft each. Every unit occupies an entire floor.

The sale will be completed by May 26, 2021, subject to the fulfilment of the purchase agreement, Swire said.

Standing at the corner of Draycott Park and Draycott Drive, the 22-storey development was completed in 2019. Its facilities include a swimming pool, children's pool, landscaped garden and sky garden. Eden is next to The Tanglin Club and also a stone's throw from The American Club.

Guy Bradley, chief executive of Swire Properties, said: "This is a significant transaction as it reflects Eden's distinct design, which has been combined with green living experiences, and also recognises the strength of our residential brand in this new market . . . We'll continue to explore Singapore for more opportunities that showcase our brand and fit our business strategy."

Sandra Yiap of Huttons, in association with Savills, is understood have been involved with the deal. Huttons declined to comment when contacted by BT.

Eden was designed by Thomas Heatherwick of Heatherwick Studio. The development reconnects residents with nature; and one of its most iconic features are the 270-degree bespoke private gardens in the sky filled with tropical greenery.

Swire Properties developed the project on the former Hampton Court site, for which it paid S$155 million or S$2,526 per square foot per plot ratio, inclusive of an estimated development charge of S$22.3 million, according to a BT report in January 2013.

Market watchers said they could not be sure whether Swire will make a profit from the development based on a price of S$4,827 psf.

Swire would have incurred additional buyer's stamp duty charges on the land purchase price, and possibly, extension charges under the Qualifying Certificate rules for foreign housing developers in Singapore, said a property consultant.

Word in the market is that Swire had been asking for about S$6,000 psf on average for individual units since late-2019. So the S$4,827 psf for the bulk deal reflects a bulk discount.

Still, market watchers said the sale is a good exit opportunity for Swire, given that the price is higher than for high-end deals in the past six months.

Based on URA Realis data, during this period, four units at Le Nouvelle Ardmore were transacted at between S$4,160 psf and S$4,500 psf. At TwentyOne Angullia Park, four units changed hands at between S$3,393 psf and S$4,197 psf while at The Marq on Paterson Hill, four units sold at S$3,884 psf to S$4,253 psf.

Han Huan Mei, research director at List Sotheby's International Realty, said: "Considering that Eden is a newly completed luxury project adorned with bespoke hand-crafted quality unseen before in Singapore's luxe segment, it would seem justifiable that it could fetch this price level."

A high-end property investor told BT that the foreign buying in today's market is still measured compared with prior to the July 2018 cooling measures.

Ms Han agreed. Her analysis of URA data on the residential status of home buyers in the Core Central Region or prime areas showed that the number of foreign buyers of private homes fell by 29 per cent in 2020 over 2019, largely attributable to the global travel restrictions and economic uncertainty amid the pandemic.

"Although Singapore is one of the countries which is able to contain the community spread of the virus, and the vaccination programme has been rolled out since the beginning of 2021, the number of foreign buyers in the first three months of the year has been rather thin.

"While the largest group of foreign buyers are still from China, they made up 21 per cent of the total foreign buyers, down from a 32 per cent share in 2020. The second largest group of foreign buyers, at 18 per cent, are from the USA.

"Under the US-Singapore Free Trade Agreement, US citizens enjoy the same treatment as Singapore citizens for the ABSD.

One of Swire's most famous residential projects is Opus Hong Kong, perched on Stubbs Road. It was designed by Frank Gehry and completed in 2012.

Amendment note: An earlier version of this article based on Swire Properties' news release stated that the group had sold all 20 units at Eden to "one exclusive buyer". Swire Properties has since corrected its release to reflect that the sale involves more than one transaction and more than one buyer. The article has been revised to reflect this.

Source: The Business Times
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