Capitaland to cash in on luxury homes market boom in 2011

The real estate company plans to launch 1,700 private homes this year and has already started marketing The Nassim and Urban Resort Condominium to its well-heeled clientele.


DBS Bank said Capitaland aims to achieve its target through its existing and new projects has reported
such as The Nassim, Urban Resort, The Interlace, d'Leedon and the residential component of Bedok Town Centre mixed development. With the exception of the Bedok site, the remaining four projects will be high-end or luxury offerings.

The bank said the simultaneous launches are “in sync” with its view that the high- end market is likely to lead the residential market price growth in 2011.

DBS pointed to the price ceiling the mass market is likely to experience with the possible launches of close to 10,000 mass market homes this year and new sites offered for sale in the 1H2011 GLS program as factors why the private home market is considered more attractive this year.

It added that aside from policy rish being skewed towards the mass market segment, there is “more room for growth” in the high-end market as it is still lagging the recent 2007 peak.

“Low and mid market condo prices have exceeded their 2008 high while those in the high end are still 5-15% below the previous high,” DBS said.
 

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