City Developments (CDL) shares surged yesterday on news that its freehold luxury project Gramercy Park in Grange Road has seen robust sales.
The counter climbed to as much as $10.48 in the morning before closing 20 cents higher at $10.47.
Trading volume was also robust, spiking to 1.68 million shares, up from 658,800 on Monday.
The stellar showing followed the developer's announcement that its 174-unit high-end Gramercy Park condo development near Orchard Road has sold 81 units across the two 24-storey residential towers.
In phase one, CDL sold 70 out of the 87 units - or 80 per cent - of the apartments launched in the North Tower.
A further 11 were moved in phase two, when 20 apartments were released in the South Tower last month.
CDL said Singapore permanent residents and foreigners - from China, Indonesia, Taiwan, Hong Kong, Malaysia, the United States, France, Britain and India - accounted for 76 per cent of the buyers. Singaporeans made up the remaining 24 per cent.
"There is pent-up demand for compelling investment opportunities. With prices of high-end properties showing signs of bottoming out, there has been an increase in buying interest for luxury developments," said group general manager Chia Ngiang Hong.
CDL said the average price was higher for the South Tower at $2,800 psf, up from the $2,600 psf achieved for the North Tower, which was launched in May 2016.
It is offering "early bird prices" for the South Tower, starting from $3.4 million for a two-bedroom plus study, $5.1 million for a three-bedder and $6.8 million for a four-bedroom apartment.
CDL noted that all two-bedder plus study units in the North Tower were sold, with good take-up seen for the three- and four-bedroom apartments. Sales included a 5,533 sq ft five-bedroom penthouse which was transacted at $16.88 million or $3,050 psf.
Gramercy Park obtained its Temporary Occupation Permit (TOP) on May 23 last year.
Qualifying Certificate rules mean CDL must sell all units at Gramercy Park within two years of obtaining the TOP - that is by May 23 next year. If it fails, the firm would have to pay extension charges related to the number of unsold units.
The rules apply to foreign developers, including Singapore builders listed here but with overseas shareholders.