Home builder DC13 Development is confident that the long-term prospects for Singapore’s high-end residential market remain promising despite the continued decline in luxury home prices in Q1 2015, revealed media reports.
During the first quarter, the average price of such properties dipped 0.7 percent to $2,091 psf as compared to Q4 2014.
According to Knight Frank, luxury property owners are under pressure to reduce their selling prices due to the possibility of further price drops, and amidst the limitations imposed by the Total Debt Servicing Ratio (TDSR) framework on property buyers.
Nevertheless, DC13 decided to proceed with its maiden luxury projects – Seaview Villas at Pasir Ris Road and Seafront Villas at Pasir Ris Avenue. They comprise four landed homes overlooking the sea, costing at least $3.7 million each. The developer also owns a stake in the recently unveiled 84-unit freehold Neem Tree condominium in Balestier.
“This market segment is attractive because we are a land-scarce country with a stable government and economy, and investors are constantly looking for good locations to purchase,” said DC13’s CEO David Cheang, who is considered one of the most successful real estate professionals in Singapore.
He began his career as a property agent with the Dennis Wee Group during the 1998 Asian financial crisis. But six years later, he was managing nearly 800 agents at HSR Property. Cheang then became the top decision maker at two property agencies, before founding DC13 Development in 2013.
Looking ahead, the company aims to generate a revenue of between $17 million to $20 million in 2016, as well as an aggregate turnover of $100 million over three years. It also plans to construct a township in Indonesia, and invest in Australia and Cambodia.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email firstname.lastname@example.org