CapitaLand Expects Flat Property Market For Rest Of Year

Source : The Straits Times, Aug 1, 2008

Half-year net profit is down 50% from last year.

PROPERTY giant CapitaLand expects the property market in Singapore to stay flat for the rest of the year, even as it prepares to launch three new condominium projects in the coming months.

'For outlook... it'll probably be very flat,' said the group's chief executive, Mr Liew Mun Leong at a results briefing on Friday.

Prices in general will be 'quite flat', with a correction seen in the high-end segment, he later told journalists.

'Demand is still very good for the mass market. In the mid-range, there are still good signs of take-up and prices are still holding well.'

While prices in the high-end segment have fallen after many buyers shied away, CapitaLand said it still prefers to focus on high-end homes.

'High-end volume will slow down, prices will not hit $5,000 per square foot but it will still be above $3,000 psf,' said Mr Liew.

'As I keep on saying, it is still higher than pre-Asian financial crisis prices.'

Prices of high-end homes hit a high of $2,400 psf during the 1996 peak.

'Demand is still there. People who sold their homes en bloc still have to buy,' said Mr Liew.

Against this backdrop, CapitaLand is planning to release two projects in River Valley - the 127-unit Latitiude in Jalan Mutiara and the 186-unit The Wharf Residence in Tong Watt Road.

It will also launch the 70-unit Urban Resort in the former Silver Tower site in Cairnhill.

Pre-launch sales have started at the two River Valley projects. CapitaLand said it has sold 11 out of 40 units in Latitude at an average of $2,400 to $2,500 psf, and 'close to 30' of 80 units at The Wharf at $1,500 to $1,900 psf.