CapitaLand is all set to test the luxury residential property market with its Cairnhill project launch.
The integrated project on the former Somerset Grand Cairnhill site, opposite Paragon along Orchard Road, will comprise a 268-unit residential tower “Cairnhill Nine”, and a 220-unit serviced residence Ascott Orchard Singapore. Both will be completed in end-2016.
Units at the 99-year leasehold project are priced attractively at an average of $2,500 psf which would fetch closer to $3,000 psf under better market conditions, said CapitaLand Singapore chief executive Wen Khai Meng, although he declined to say if Cairnhill Nine was among several projects for which CapitaLand made a $110.1 million impairment last year.
About 89% of the units are one- to two-bedroom units, sized from 592 to 1,324 sq ft. Starting prices are from $1.35 million for a one bedder to $3.68 million for a four bedder.
Adjusting to the times
"As a real estate developer, you have to ride through the cycles. Whether it's good or bad times, life has to go on…We do our best to adjust to the demands of the market at each point, whether in terms of pricing or unit sizes," added the chief executive.
When the project was designed, market demand had already shifted in favour of smaller units - as opposed to when the company was building The Orchard Residences, Urban Resort Condominium and Urban Suites in the area, said Mr Wen.
In redeveloping the site, which is zoned residential and commercial, CapitaLand did not opt for a pure serviced apartment play as it could be too large for the market. As it stands, though, owners of apartment units will be able to enjoy some of the services at Ascott, such as the concierge service, or even request for housekeeping.
Investors and locals who like the buzz of the area may find the project appealing. A VIP preview will be held this weekend while a public launch should come next month.
Other CapitaLand's projects coming up for launch in the first half of this year are The Nassim and Victoria Park Villas.
Source: Straits Times