As stated in media reports, despite the decline that has been observant in the prices of luxury homes in Singapore for Q1 2015, developer DC13 Development remains confident about the future long-term prospects of the high-end market.
Compared to Q4 of 2014, the average prices of luxury properties took a 0.7 percent dip to stand at $2091 psf in the first quarter of this year.
Knight Frank stated that this was mainly happening as high-end homeowners were under a lot of pressure to reduce the selling prices of their property, fearing that prices could further drop in the near future. Also, another factor that was affecting the prices was the Total Debt Servicing Ratio, which has imposed limitations on property buyers.
However, DC13 has decided to continue with its high-end projects that include Seafront Villas at Pasir Ris Avenue and the Seaview Villas at Pasir Ris Road. These projects have four landed homes that are priced at a minimum of $3.7 million upward each and also overlooks the sea. The developer is also known to possess a stake in the recently unveiled 84-unit condominium in Balestier, Neem Tree.
CEO of DC13, David Cheang, who is also considered to be among the most successful professionals in Singapore’s real estate scene, says that the luxury homes market is attractive considering that Singapore has scarcity of land, but at the same time, had a stable government as well as economy. Keeping these in mind, investors will always seem to look to purchase great locations.
Looking ahead, Cheang’s DC13, which was founded in 2013, aims to generate revenue of $17-$20 million in the upcoming year. It has also set targets on an aggregate turnover of $100 million in the next three years.
Besides these, DC Development is looking to invest in Cambodia and Australia, and also build a township in Indonesia.