MCC Land and Hao Yuan Investment, its partner, launched 1,720 units in 2016 in three projects despite the year being difficult. The first project to be launched was Northwave EC in July; the next was The Alps Residences in October while Queens Peak was launched in November. As at December 11, the partners had sold 1,117 units consisting of existing projects and new launches.
(Artist Impression of The Alps Residences)
Tan Zhiyong managing director MCC Land attributed the encouraging sales to the competitive pricing strategy and well-position products.
“The overall sales in 2016 encouraged us since the year had been challenging to the property cooling measures effects and uncertain geopolitics,” said Tan.
The developer experienced unprecedented sales when The Alps Residences sold 280 units or 44% on its launch. By mid-December, 56% or 356 units had been sold.
The success of The Alps Residences sparked rebound sales at The Santorini where almost 100 units have been sold in the last 2 months with the sales total 262 of the 597 units. MCC Land intends to re-launch The Santorini in the second quarter of 2017 after it obtains TOP.
Queens Peak was launched in November. The development has 736 units with a direct link to Queenstown MRT on Dundee Road. A total of 275 units have been sold since early November.
“I am confident that the steady sales will continue given that the development has private lift access for its 3, 4 and 5 bedroom apartments that also have unblocked views since they are located on 28th to 44th floors, 77 lifestyle facilities and smart-home features,” said Tan.
Tan’s confidence was also buoyed by the recent sale of a site in Margaret Drive where MCL Land was the top bidder at $998 psf ppr or $238.39m, and which attracted 14 bids.
“Queens Peak strong sales may have encouraged the bidding for the site by developers,” said Nicholas Mak, SLP International head of research and consultancy.
The Margaret Drive site top bid was 14.5% more than what Hao Yuan paid for Queens Peak at $871 psf ppr and the $883 psf ppr that the City Developments paid for Commonwealth Towers.
“The high rate of participation and the high price are an indication of the hunger that developers have for land,” said Mak.
While Hao Yuan and MCC Land have launched the most projects collectively this year, they do not have any planned new launches for 2017 since both have exhausted their land-bank. However, according to Tan, they are open to buying sites via en bloc purchases and GLS tenders.