The 88 serviced apartments at the Concourse will be redeveloped into a 360-unit residential property. Developer Hong Fok Corporation said the 99-year leasehold units will be "priced to sell" in today's softer property market.
Ninety units of Concourse Skyline will be launched over the next few days in Singapore and Hong Kong. They will be sold at a price of between S$1,580 and S$1,800 psf – about S$1.3 million for a single bedroom unit.Joseph Tan, executive director, Residential, CB Richard Ellis, said: "This year, in terms of a broad range of transactions, we still see transactions between S$1,500 and S$3,300 psf. So in a sense, we are a bit below that. That's why it's priced to sell."
Hong Fok said while the current serviced residences saw occupancy rates hover around 90 per cent, those units only used up about 60 per cent of the total space available. The remaining 40 per cent was wasted on corridor space.
The developer will tear down the current two towers and rebuild them with the same facade at an estimated S$200 million.
Hong Fok said construction costs are expected to soften by the time building works start in early 2009 and the development will be ready for accommodation by end-2012.
Concourse Skyline will offer a view of the Marina Bay Sand integrated resort and the Singapore Sports Hub.
Units at the 40-storey and 28-storey towers will be designed by top architect Philip Cox, and will include one- to four-bedroom apartments, sky suites, penthouses and super penthouses.
Hong Fok is positive on market sentiment and said it has already received enquiries on about 25 units.
Cheong Sim Eng, executive director, Hong Fok Corporation, said: "With the buyers on hand, we wouldn't want to wait. We have planned this more than two and a half years ago. With the F1 coming, we don't need to wait for a better time to launch."
Analysts from DTZ and CB Richard Ellis noted that three multi-billion-dollar projects – the Kallang Riverside, the Ophir-Rochor Corridor and Marina Bay – surround Concourse Skyline, putting it in good stead for capital appreciation and future rental potential. - CNA/so
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