Mitsui Fudosan to showcase more Tokyo projects in Singapore

March 12, 2015 3:11 PM SGT

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SINGAPORE: Property developers from Japan are recognising that Singaporean investors are an important market they can’t ignore.

Mitsui Fudosan Residential, a wholly-owned subsidiary of Mitsui Fudosan Co Ltd, one of Japan’s biggest developers, showcased its latest project, Global Front Tower, in Singapore on the weekend of Jan 31 and Feb 1.

About 40% of the two- and three-bedroom units in Global Front Tower released in Singapore were snapped up during the weekend launch, which saw more than 100 walk-ins.

Units sold averaged $750,000, with unit prices at just above $1,000 psf, according to Stephen Ho, CBRE’s regional director for Southeast Asia and Japan desk.

Global Front Tower is an 883-unit residential block located in the Shibaura neighbourhood in the prime residential enclave of Minato Ward in Tokyo.

The project had already pre-sold 400 units in Japan during the sale of the first phase in July 2014, followed by another 250 units in the second phase, which was released in September and October 2014.

The project was officially launched in early February, at the same time it was showcased in Singapore.

“Even though Global Front Tower has sold very well in the domestic market in Japan, the developer, Mitsui Fudosan Residential, believes that it is equally important to tap overseas investors, and that is why they are collaborating with CBRE,” says Ken Nakazawa, Tokyo-based director of international project marketing at CBRE KK, who was in Singapore for the weekend launch.

Nakazawa was previously with JLL in Japan before moving to CBRE late last year.

Most of the buyers in Singapore are investors, with only 10% buying condominium or apartment units as holiday homes, he notes.

Taiwanese buyers have traditionally been an important overseas market for Japanese developers, given the proximity of Taipei to Tokyo.

Nakazawa sees a big difference between the buying behaviours of Taiwanese and Singaporeans.

“Taiwanese will come to the showflat in Tokyo and take a longer time to study the development before committing to a purchase.

Singaporean buyers often buy units without having seen them, and then when the project is completed, they will make a trip to Tokyo to find out what they have bought.

It’s similar with the Hong Kong buyers.” This isn’t the first time that Mitsui Fudosan has showcased its Tokyo projects in Singapore.

It has launched projects in Singapore since 2013, with JLL as the marketing agent.

For example, in 2013, Mitsui Fudosan launched Park Tower Toyosu and Tokyo Roppongi in Singapore.

While Park Tower Toyosu offered views of Mount Fuji, Tokyo Roppongi offered residences with hotel services by Ritz-Carlton Tokyo.

Last April, Mitsui Fudosan also launched the 734-unit Park City Ohsaki The Tower in Singapore.

The project is part of a flagship mixed-use development that is located within 1km of the special zone designated for companies’ Asian headquarters and R&D centres.

The other project Mitsui Fudosan launched last year was Park Homes Tsukiji Green Side, situated within walking distance of the Ginza shopping district.

“There’s a high possibility that Mitsui Fudosan will continue to bring in more projects to Singapore,” says Kenichi Machida, Tokyo-based executive manager of the residential development division at Mitsui Fudosan Residential, who spoke through an interpreter.

Global Front Tower is the largest development (in terms of the number of residential units) showcased by Mitsui Fudosan in Singapore so far.

The project is expected to be completed in January 2016, with handover of the units to buyers in April that year.

Nearby, on Shibaura Island, which is part of Minato Ward and located on reclaimed land right on the waterfront, Mitsui Fudosan has a massive 2,400-unit condo development that was completed a decade ago.

Two of the blocks — Cape Tower and Grove Tower — have a total of 1,200 units and are fully sold.

The other two blocks — Air Tower and Bloom Tower — are being held by the developer for rental income.

Average unit prices at Cape Tower and Grove Tower are said to have increased 40% over the past decade.

“Mitsui Fudosan’s developments tend to command a premium in the secondary market,” says CBRE’s Nakazawa.

Mitsui Fudosan is no stranger to Singapore.

It has been a joint-venture partner with Hong Leong Holdings, controlled by the family of Singaporean property tycoon Kwek Leng Beng, since 1973.

The joint-venture company, called TID Pte Ltd, has been involved in many developments, with nine condo projects in the Upper Changi-Flora Drive neigbourhood, the most recent being Hedges Park and Inflora.

Other developments include the 297-unit Optima in Tanah Merah; Nathan Suites, a newly completed 65-unit boutique luxury condo project on Nathan Road, just off River Valley Road; the 264-unit high-end The Oceanfront in Sentosa Cove; and the 173-unit luxury condo St Regis Residences.

According to Machida, Mitsui Fudosan will continue to collaborate with Hong Leong via TID Pte Ltd in Singapore.

There are also plans for Hong Leong and Mitsui Fudosan to collaborate in projects in Japan, he adds.

CBRE may not be a first mover when it comes to marketing residential projects from Japan in Singapore, but Ho believes there is still room for growth, not just in Singapore but also in other Southeast Asian cities.

“We are looking at opening the Bangkok market to projects from Australia, the UK and even Japan,” he says.

This article appeared in the City & Country of Issue 664 (Feb 16) of The Edge Singapore.

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