PropNex’s Dominic Lee – ‘Clear signs of a rebound in Districts 9 and 10'
By Cecilia Chow
/ The Edge Property |
For much of the last two years, Dominic Lee drove by OUE Twin Peaks every day. “From the outside, I thought it was such a stunning project,” says the 42-year-old brand district director of PropNex Realty. He asked if he and his team at PropNex could be appointed as a marketing agent for the project. By September last year, PropNex had become the fourth marketing agent for OUE Twin Peaks, alongside CBRE, Centaline and Savills.
Lee and his team at PropNex sold 36% of the units in one tower of OUE Twin Peaks
When the project was relaunched last November, few units were sold, despite the fact that the developer, OUE Ltd, had dangled a 12% discount. “It was difficult to move units then as the prices were still perceived to be relatively high,” says Lee.
Things changed on the Labour Day weekend of April 29 to May 1, when OUE offered a deferred payment scheme. Lee and his team of 20 agents sold close to 20 units over the long weekend.
The amenities at the 462-unit Twin Peaks, where only 12 units remain unsold since the deferred payment scheme was launched two months ago. The remaining tower has been held back for bulk purchase
So far, the agents at PropNex headed by Lee have sold 78 units at OUE Twin Peaks, which translates to 36% of units sold. Lee has sold 11 units. Only a dozen units in the tower remain unsold since the launch of the scheme two months ago. OUE has only released one tower for sale and is holding back the second tower for bulk purchase. Both towers at OUE Twin Peaks are identical, with 36 storeys and 231 units each. The 99-year leasehold project was completed in February 2015.
About 60% of the units sold were under the deferred payment scheme. “If it hadn’t been for the deferred payment scheme, the units wouldn’t have flown off the shelf,” says Lee. “It was what drew buyers to the project, even though not all of them took it up.”
Lee: If you speak to anyone on the street today, they will tell you it’s a good time to buy property as prices in the prime districts have already corrected
Activity in prime districts
Following the success of OUE Twin Peaks, PropNex has also been appointed to handle the marketing of City Developments Ltd’s new luxury condominium development further down Grange Road, namely the 174-unit Gramercy Park. The freehold project obtained its Temporary Occupation Permit in May. Last month, JLL and Savills marketed the project in Jakarta and Surabaya, while Singapore Christie’s International Real Estate showcased the project in Hong Kong. PropNex will be marketing the project in Singapore.
Based on caveats lodged and downloaded on June 20, seven units at Gramercy Park were sold at prices ranging from $2,424 to $2,849 psf. “For a freehold luxury condo in prime District 10, such prices are considered very attractive,” says Lee. “That’s why sales have been picking up.”
Meanwhile, two units at OUE Twin Peaks crossed $3,000 psf mark in May. One was a 1,399 sq ft, three-bedroom unit on the 35th floor that fetched $4.2 million or $3,009 psf. The other was a 549 sq ft, one-bedroom unit on the 34th floor that was sold for $1.68 million (or $3,056 psf).
“I see clear signs of a rebound in prices in Districts 9 and 10, but not necessarily in transaction volume,” says Lee. “If you speak to anyone on the street today, they will tell you it’s a good time to buy property as prices in the prime districts have already corrected. But what’s holding them back? The additional buyer’s stamp duty and the total debt servicing ratio. The only people who are not affected by ABSD or TDSR are the very rich, and they have plenty of choices.”
Zooming in on luxury
Since he joined PropNex a decade ago, Lee has been specialising in high-end condos in the prime districts. The first project that he was involved in was the 428-unit Marina Bay Residences at Marina Bay Financial Centre. All the units were sold within three days at an average price of $1,850 psf even without a launch. Lee was representing high-net-worth investors then and not the developer.
“It was back in December 2006,” recounts Lee. “The timing was perfect. I sold 50 units at Marina Bay Residences. It was easy to make money then. So I dropped everything and specialised in the high-end segment.”
Like all property agents who were marketing high-end projects at the peak of the market 10 years ago, Lee not only brokered sales on behalf of buyers, he also became a buyer.
The 174-unit Gramercy Park has seen sales picking up in the past month
He bought units at Marina Bay Residences, The Sail at Marina Bay and even invested in condos in Sentosa Cove. But he has since sold almost all his investment properties except for the house he lives in with his family on Eastwood Road. “It’s easy to give advice to people, but the moment when your own money is involved, it’s a completely different thing. Emotions come into play.”
Prior to joining PropNex, Lee started his career with two boutique property agencies 15 years ago. The first was McDowell Realty and the second was the now defunct First Tree Properties whose claim to fame was the failed collective sale of Horizon Towers on Leonie Hill Road.
Before becoming a real estate agent, Lee was an insurance agent with AIA for four years. He had dropped out of school after the first year of polytechnic and started his own entertainment company, which he ran for four years. “I’ve only had three real jobs in my life,” says Lee. “The only gift I have is that I am a good talker.”
The gift of the gab has served him well in his career. In June last year, Lee started a luxury team under PropNex’s powerful negotiators division. He now has more than 40 people under him. He is looking to ride the next wave and believes that prices of high-end condos in the traditional prime Districts 9, 10 and 11 may already be on the road to recovery after two successive quarters of price growth.
“OUE Twin Peaks was the first time I represented a developer,” says Lee. And now that the tower is substantially sold, Lee and his team are focusing their attention on Gramercy Park.
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