CapitaLand to launch freehold condo soon

August 2, 2008
CapitaLand to launch freehold condo soon

CAPITALAND plans to launch in the second half of this year a freehold
condo - Urban Resort - with about 70 units on the Silver Tower site
in Cairnhill. The average price is expected to be above $3,000 psf,
CapitaLand Residential Singapore CEO Patricia Chia told reporters
after the group announced second-quarter results.

CapitaLand has also sold 11 of the 40 units released so far at
Latitude at Jalan Mutiara in the River Valley area at an average
price of $2,400 to $2,500 psf. Over at Tong Watt Road, it has sold
close to 30 of 80 units released recently at The Wharf Residence;
prices range from $1,500 to $1,900 psf.

CapitaLand leads a consortium that will redevelop Farrer Court which
is slated for launch in the first half of next year.

Asked about his outlook for the Singapore residential market, Mr Liew
said: 'Demand is still very good for the mass market. (For) the mid-
range, there are still good signs of take-up; I think prices are
still holding well for the mid-range.

'But in the high-end, there's not going to be massive demand. (In
terms of prices), obviously it won't be the $5,600 psf record price
that we achieved for a penthouse at Orchard Residences last year. But
prices will still be above $3,000 psf.

'So prices will still be way above the last peak, pre-Asian crisis.
Demand is still there. People who sold their properties through en
bloc sales still have to buy apartments,' he said.

Given Singapore's limited land resource and with population projected
to grow to 6.5 million, in the 'long term, property prices will go
up', Mr Liew said, adding: 'It's a no-brainer.'

'I think we're overinfected with the housing slump in the US. That
sort of mood comes to Singapore that property prices (here) will
(also) go down. But look at the fundamentals, look at demand
fundamentals. I think we are much stronger in Asia,' Mr Liew noted.

The group's earnings are underpinned by progressive recognition of $4
billion residential sales in Singapore in 2006 and 2007.

CapitaLand's chief investment officer Kee Teck Koon said that in
Singapore, the group has hardly any residential stock or inventory
that it is holding. 'So there is no issue of writing down. Most
importantly, those new projects we've got, we have underwritten a
value that is very supportable even at current prices,' he added.