Discounts at Corals at Keppel Bay, One Balmoral drive sales

By Tan Chee Yuen / The Edge Property | December 3, 2016 8:00 AM SGT
There has been a spike in transactions at Corals at Keppel Bay since the 366-unit luxury condominium project by developer Keppel Land obtained its Temporary Occupation Permit in October. According to property agents, the developer is offering a new post-TOP scheme for selected units. It includes a standard 10% discount, a 10% additional buyer’s stamp duty absorption, plus a 3% early-bird discount.
In October, units of 872 sq ft to 1,389 sq ft were sold at prices ranging from $1,755 psf to $1,919 psf. The three units sold last month were two-bedders from the second to the fourth levels of the same stack. A 926 sq ft unit on the second floor was sold for $1.692 million ($1,828 psf), according to a caveat lodged on Nov 15. Directly above it, a 915 sq ft two-bedder fetched $1.693 million ($1,850 psf) on Nov 20. Another 915 sq ft unit on the fourth level was sold for $1.712 million ($1,871 psf).
The dip in prices are evident compared with the average price of about $2,200 psf achieved in 2013, when Corals was first launched. The developer says the project is about 60% sold to date. About 60% of the buyers are said to be Singaporeans, with permanent residents accounting for 16% and foreigners, 24%.
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Units in Corals at Keppel Bay sold over the last two months ranged from $1,755 to $1,919 psf
The project was designed by renowned architect Daniel Libeskind as “a coral reef”, with 11 blocks of five to 10 storeys. Libeskind also designed the neighbouring Reflections at Keppel Bay, also by Keppel Land and completed in 2011. Both Corals and Reflections are 99-year leasehold projects.
Like the luxury condos in Sentosa Cove, the two projects at Keppel Bay are not subject to the conditions of the Qualifying Certificate (QC), which requires the developer to sell off all its units within two years of completion or pay an extension charge prorated to the proportion of unsold units within the project.
Corals has a wide range of units, from one- to four-bedders of between 570 and 3,660 sq ft. There are also eight penthouses of 4,725 to 7,868 sq ft. One of the penthouses sold was a 4,930 sq ft unit that fetched $12.2 million ($2,475 psf) in November 2013. It was also the highest absolute price achieved for a unit in the development. Meanwhile, the highest price psf was for a 3,520 sq ft, four-bedroom unit on the fourth floor. It fetched $10.48 million or $2,960 psf in May 2015.
At the junction of Balmoral Road and Stevens Road is Hong Leong Holdings’ One Balmoral in prime District 10. The freehold 91-unit condo obtained its TOP in September. One Balmoral contains twin 12-storey blocks with a mix of one- to four-bedroom units of 592 to 2,691 sq ft, including penthouses.
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Five units have been sold to date since Nov 12, based on caveats lodged with URA Realis. They ranged from a 592 sq ft one-bedder on the second level that fetched $1.34 million ($2,258 psf) to a four-bedroom unit of 1,658 sq ft on the 11th floor that was sold for $3.87 million ($2,332 psf). Two three-bedroom units of 1,421 sq ft on the sixth and seventh floors were also sold, for $3.11 million ($2,190 psf) and $3.13 million ($2,206 psf) respectively.
Based on caveats lodged, prior to the recent spate of sales, there had not been any recorded transactions at One Balmoral since May last year, when a 592 sq ft one-bedder on the third level fetched $1.45 million ($2,441 psf).
The recent pickup in sales was attributed to the 13% discount offered by Hong Leong, with effect from Nov 12, according to property agents. When the project was first launched in mid-2013, units were sold at prices ranging from $2,010 to $2,603 psf.
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Based on caveats lodged, 14 units have been sold to date. However, as Hong Leong Holdings is privately held, it is not subject to QC conditions and is, therefore, not under pressure to sell all the units within two years of completion.
This article appeared in The Edge Property Pullout, Issue 757 (Dec 5, 2016) of The Edge Singapore.