MCL Land’s upcoming condominium project, Lakeville, located in the Jurong Lake District, will be launched with an average price of $1,250 to $1,350 per square foot (psf).
The group’s chief executive officer, Koh Teck Chuan, told BT yesterday that this average pricing is an early-bird pricing on the balloting day to encourage potential buyers when the project is open for booking tomorrow.
The developer has not decided on the number of units in the 696-unit project that will be initially launched as that will depend on the demand, Mr Koh said. Huttons is the marketing agent for the project.
This development sits on a 240,654 sq ft plot with a 99-year lease. It was snapped up by MCL in January last year for $439 million, or $651 psf per plot ratio.
“There is huge pent-up demand in Jurong,” Mr Koh said, adding that the project will benefit from the remaking of the Jurong Lake District into a regional centre, as well as having a view of the Chinese Garden and nearby amenities.
Pricing for this project is reasonable, analysts noted. Units at MCL’s earlier project in Jurong East, J Gateway, were sold at an average of $1,480 psf when they were launched last July, with most of the 738 units snapped up in one day.
Another point of reference is resale prices at Lakefront Residences near the Lakeside station, which achieved a median $1,121 psf over the past two years since it was launched by Keppel Land at an average price of $1,020 psf in 2010.
“The demand can support this (Lakeville) project but the loan limit under the total debt servicing ratio (TDSR) will still be an issue,” said OrangeTee research head Christine Li.
If the attractions slated for the Jurong Lakeside District under URA’s 2008 masterplan really take off, that will be beneficial to the project, she added.
Plans to remake Jurong Lake District into a commercial and lifestyle hub will be fully realised in 10 to 15 years. The transformation is starting to take shape with the recent opening of new retail malls and more homes being launched. A new Jurong General Hospital and a Genting hotel in Jurong will be ready in 2015.
Ong Kah Seng, director at R’ST Research, said he expected a good take-up for the project from owner-occupiers as Lakeside is “increasingly shaped into an enchanting residential enclave” with proximity to an MRT station.
“There is promising investment potential in Lakeside, a tested leasing demand area, although the increased supply will mean that rents have to be pegged attractively and investors need to have a realistic, long-term investment expectation,” he said.
Among projects located near the Lakeside station, Caspian and Lakeholmz – projects developed by Frasers Centrepoint Homes – achieved median rents of $3.45 psf per month and $3.10 psf per month respectively in the fourth quarter, based on URA quarterly rental data.
MCL recently won two adjacent executive condominium sites in Choa Chu Kang. It is slated to launch Palms@Six Avenue in May, which will have 32 semi-detached houses on a freehold site along Sixth Avenue.
Credits: ST Property