Comprising 13 luxury villas, six units have already been snapped up by investors from Singapore, Europe and the Asia Pacific region during its preview.

The villas are priced from S$14 million to $22 million.

They range in sizes from 9, 000 sq ft with two good sized parcels of more than 14, 000 sq ft.

The villas come with double volume corridors which connect pavilions for living and dining.

Premium European brands like Miele and Duravit from Germany and Arclinea from Italy feature throughout the villas.

Antonio Citterio, a world-renowned designer of the Bvlgari Hotel Milan and Bvlgari Resort Bali, was also roped in to design the villa´s bespoke while designer Poliform created the private dressing rooms that grace each master suite.

Margaret Thean, managing director of DTZ, said the good take-up rate of the project demonstrates the optimism of market sentiment and confidence in Singapore´s luxury property sector.

Thean added that this will be further strengthened with the completion of the developments around the Marina Bay Financial Centre and the two Integrated Resorts.

Sentosa Cove is the only location in Singapore where foreigners can own landed property.

LUXURY homes continued to sell well right to the end of 2009, updates from two developers show.

Malaysia-based YTL Corporation has sold six of the 13 villas at its Kasara project at Sentosa Cove, at prices ranging from $14 million to $22 million. This works out to about $1,600 per sq ft on average.

And on the mainland, CapitaLand has sold 60 apartments in the 165-unit Urban Suites condominium in the Cairnhill area, at prices ranging from $2,400 to $2,700 psf.

YTL sold the six villas in November and December through private previews. It will officially launch the remaining seven villas tomorrow.

CapitaLand started preview sales in Singapore for phase one of Urban Suites – on the former Char Yong Gardens site in Hullet Road – just before Christmas. Sixty units were released in phase one and sold to buyers prepared to purchase more than one.

CapitaLand, which is developing the project with Wachovia Development Corporation, plans to launch the second phase, comprising about 50 units, in Jakarta next week.

Both CapitaLand and YTL say the brisk sales indicate the luxury market is picking up.

‘The successful launch of Urban Suites is testament to buyers’ confidence in the fundamentals of the Singapore economy and the growth potential of the high-end property segment,’ said Patricia Chia, chief executive of CapitaLand’s residential arm.

YTL Singapore director Kemmy Tan said: ‘The mass market segment was the key driver last year, so the luxury segment still has room to move up. We are very positive on the outlook for 2010.’

At Kasara, selling prices will be bumped up slightly with the official launch. The villas, which range from 9,000 sq ft to more than 14,000 sq ft, will now be sold for an average $1,700 psf.

They were designed by DP Architects and aim to combine Asian architectural style with European interiors and fittings.

YTL said the six homes sold so far have been bought by Singaporeans and foreigners from the Asia-Pacific and Europe. Sentosa Cove is the only place in Singapore where foreigners can own landed property without special permission.

Over at Urban Suites, about two-thirds of the buyers are foreigners from countries including China, Australia and Canada. Most buyers bought two units, CapitaLand said.

It gave a one per cent discount to buyers who picked up more than one unit. Buyers have a choice of two, three and four-bedroom apartments as well as duplex and triplex penthouses. The units range from 1,044 sq ft to 4,715 sq ft.

Analysts say CapitaLand can be expected to raise prices for subsequent phases.

In a note yesterday, DBS Group Research analyst Adrian Chua said the prices achieved for the 60 units transacted so far exceed his expectation of $2,400 psf. ‘We continue to advocate going for the high-end property developers,’ he said.

SOURCE: Business Times

According to Bill Barnett Managing Director of C9 “this year has seen the absence of new high end product which has propelled the secondary segment, while off plan product remains sluggish.”

Adding further that “the failure to launch new projects is a key constraining factor limiting volume in the marketplace. Despite demonstrated sales of a number of ‘super’ high end villas from THB 165 – 330 million, developers remain on the sideline more out of negative risk concern then fundamentals.”

Market data pinpoints that a growing number of early purchasers in developments are now cashing out at substantial profit levels thus pushing up pricing points for existing product. Geographically Kamala’s Millionaires Mile has experienced the highest level of activity.

Without significant new product entering the supply steam, the second half of 2009 has seen a growing number of premium ocean view lots transacted with buyers set to develop their own luxury residences.

Bill Barnett commented “traditionally the period of December to April remains peak sales season, and feedback in the past few weeks has seen sales traction. Ultimately the market desperately requires new launches to stimulate broader interest if there is to be a return to stabilized trading.”

SOURCE: Property Report

According to the Phuket Luxury Villa Market Update Mid-Year Report released by leading Thailand consulting firm C9 Hotelworks, sales volumes for units priced upwards of Bt65m outperformed other sectors by significant numbers.

C9´s Managing Director Bill Barnett said supply and demand fundamentals for the high end are continuing to strengthen given that excess supply is being absorbed, while macro issues are restricting demand for new product launches.

“While market recovery prospects are being set back to 2011, there has continued to be a gradual upswing in activity, driven primarily by earlier than anticipated momentum in many of the financial source markets where potential overseas buyers originate from” Barnett said.

According to the research, the existing inventory of luxury villas is valued at Bt10bn with 92 units currently on the market. For the period of January to June of this year 19 properties were sold, while the resale market emerged with over Bt1bn in transactions.

“Mixed use hotel managed projects provided branding premiums with a 55 percent uplift in achieved pricing per square metre,” said Barnett. “Developers are seeing a stabilisation of gross margins despite upward cost pressure on labour and commodities such as timber. From our discussions with quantity surveyors materials such as steel are now back to levels similar to the first half of 2008; while construction volume remains low there is no expectation that pricing will drop.”

The report concludes that continued tight equity and debt market will limit new developments while barriers to entry highlighted by limited ocean or beach front land indicates positive long term stability. Resale’s, rentals and an emerging fractional ownership market are tapped to drive wider demand in the near to medium term.

SOURCE: Property-report.com