Duo Residences, the first project to be launched by M+S, a joint venture between Temasek Holdings and Khazanah Nasional, has recorded bumper sales.
This could augur well for upcoming mixed developments similar to Duo, though some consultants warn it may shrink investment demand for the next few weeks.
The 660-unit project next to Kampong Glam had sold 468 units out of the 540 units released, as of 3pm on Friday, M+S said on Friday. This works out to a take-up rate of about 87 per cent within three days of concurrent sales in Singapore and Malaysia.
Property agents later told The Straits Times that, as of 10pm on Friday night, fewer than 100 units were left.
The average selling price was about $2,000 per sq ft (psf) and the highest price psf achieved was $2,600 psf for a studio apartment, M+S said in a statement.
"We've proven that it's the right price," said M+S chief operating officer Kemmy Tan Friday.
Most of the buyers - 78 per cent - were Singaporeans. Of these, the bulk were investors.
Malaysians accounted for 16 per cent of buyers. The remaining 6 per cent were mostly Indonesians, Chinese and Americans.
Potential buyers who spoke to The Straits Times at the Duo showflat on Friday said they like the fact that Duo Residences is part of a mixed development.
"It's a mixture of things in one place. It is all together, yet the commercial (part) is separate, so there is privacy," said lawyer Yasmine Tyebally. She bought an 893 sq ft two-bedder for about $1.5 million Friday.
Consultants said the success of Duo's launch indicates that competitively priced projects will do well as buyers are increasingly cost-conscious.
"In a buoyant market, an iconic development like Duo would have commanded well over $2,000 psf... the average price could have been $2,200 psf or more," said PropNex chief executive Mohamed Ismail.
Apart from the 49-storey Duo Residences residential block, the integrated development also includes Duo Tower, a 39-storey commercial and hotel complex.
It will have a retail gallery at the ground podium, called Duo Galleria, which will come with a basement carpark.
Mr Ismail said that upcoming mixed developments such as Guocoland's Clermont Residences and South Beach by City Developments could also see high demand "if the price is right".
However, OrangeTee research head Christine Li said that in general, strong sales at Duo could mean a smaller pool of investors for imminent launches.
"Investors have been waiting on the sidelines for projects like Duo. Some investors only have one chance to buy an investment property, so they will just go for something that suits them and max out their budget," she said.
Colliers International research head Chia Siew Chuin said that since Clermont Residences and South Beach are likely to appeal to a different group of investors, their sales would probably not be hindered by Duo's success.
"Property investors are quite savvy and know what's available on the market. Some may be looking for a trophy project and think Duo is suitable, but others may be holding out for other projects," said Ms Chia.
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