Saturday, July 19, 2008

UE's Park Central @ AMK To Sell For $490-500 PSF

Source : The Business Times, July 19, 2008

It has 'condo-style' fittings and finishes, & expects a sell-out

UNITED Engineers (UE) has priced its Design, Build and Sell Scheme (DBSS) project Park Central @ AMK at an appealing $490-$500 psf - in an apparent bid to move units fast.

UE acquired the Housing and Development Board site in November 2007 and based on the $212.40 per sq ft per plot ratio (psf ppr) it paid, property consultants estimated the launch price could be around $580 psf.

The actual price, revealed yesterday by UE, is lower than the reported average price of $520 psf for another DBSS project, City View @ Boon Keng, launched earlier this year.

UE did not comment on its pricing strategy but said Park Central @ AMK will comprise four 30-storey towers with a total of 578 four and five-room units.

With 'condominium-style' fittings and finishes, four-room units are not expected to cost more than $400,000, while five-room units will be under $600,000.

PropNex CEO Mohamed Ismail said the project is, 'competitively priced'. 'I am glad the developer has priced it sensitively.'

Mr Ismail said that when City View @ Boon Keng was launched there was, 'some resistance' to the pricing.

Savills Singapore director (marketing and business development) Ku Swee Yong agrees that Central Park @ AMK is attractively priced. He believes UE could be looking at a slim profit margin, given a breakeven price of around $400 psf.

Increasing construction costs, which he estimates at between $200-$250 psf, could also weigh in.

Still, a sell-out development would be good for overall market sentiment, he said.

Comparing the pricing of Central Park @ AMK with the prices of HDB resale flats in the area, ERA Asia-Pacific assistant vice-president Eugene Lim said UE's project looks like good value.

Mr Lim said that five-room flats in the area, which are at least five years old, are going for around $400,000.

That UE aims to sell Central Park @ AMK seems clear.

Still, the response from buyers is unlikely to reach the fever pitch experienced at the launch of the first DBSS development in late 2006. Then, almost 6,000 people applied for 616 units at Premiere @ Tampines. But those units were going for around $300 psf.

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