A subsidiary of the Al Fara’a Construction, Industrial and Property Group, Al Fara’a Properties, yesterday announced that it has completely sold out the first phase of their “Image Residences” luxury residential project, just a few days after the launch.

The project attracted a high level of interest from both local and global investors. According to a recent press release, Al Fara’a seeks to “leverage the project’s outstanding sales performance to further strengthen its expansion plans.” Read - borrow more money and build another one as quickly as possible. If this sounds reminiscent of the Spanish property developers’ attitudes of just a few years ago, you can enjoy watching this one unfold. Al Fara’a also claimed an extremely successful participation in Cityscape Abu Dhabi held at the Abu Dhabi National Exhibition Centre, where it showcased its latest project and complete portfolio.

The developer has attributed the project’s tremendous success to its high quality and wide array of offerings, which include a selection of sophisticatedly-designed spacious studio, one, two- and three-bedroom apartments and plush townhouses. Comprising of a 17-storey and 11-storey tower, the development will boast smart home technology, in addition to a host of other amenities such as a landscaped leisure deck on the podium level with a swimming pool and children’s pool, a fully-equipped gym, outdoor seating and BBQ area. Retail outlets at the ground floor are also planned.

Natasha Gangaramani, one of the Directors said, “We are extremely pleased with the remarkable turn-out for “Image Residences.” The success of our developments continues to be a credible representation of the brand equity we are building for Al Fara’a that is mainly fuelled by our aspiration to let more customers acquire our offerings through our flexible payment terms. The response we have gathered at Cityscape Abu Dhabi was overwhelming, with our investors showing great confidence in us as a result of our rich history of 28 years in the construction and development industry and our strong commitment to the timely delivery of our projects.”

Downtown Jebel Ali is a two-million-square-meter mixed-use urban community along an 7-mile stretch of Sheikh Zayed Road that is comprised of three individual districts - the Urban Centre, the Trellis District and the Medina District. Small courtyards, plazas, cafes and local shops are planned in an effort to create a “family-friendly environment,” which will apparently include cobblestone streets and walkways to “entice residents and visitors to walk around and experience the tranquility of the new residential hub.”

Nitesh Gangaramani, another Director, said, “Downtown Jebel Ali complements our vision for “Image Residences” - one of luxurious living that is in stride with the pace of the fast-evolving modern Dubai. We believe that the wide range of amenities, which perfectly complement the lifestyle of residents seeking to establish themselves within a dynamic environment such as Downtown Jebel Ali, have also driven the success of the project. As a leading developer, our aim is to constantly provide projects, which perfectly address customers’ requirements in terms of quality, location and investment returns.”

Al Fara’a Properties

The Asian Luxury Property Market saw record prices in many areas in 2007. Luxury property developers took advantage of the flourishing market and in some cases adapted existing plans to increase floor area and the level of appointments to attract a wealthier clientele.

Hong Kong Luxury Residential Real Estate

Hong Kong set a new record with the sale of Branksome Crest’s  three thousand square foot penthouse duplex apartment for more than $20 million – over $4,000 per square foot.

Pundits suggest that the record will not last long and is likely to be broken once again in 2008. CB Richard Ellis mentioned in their 2007 report that high-end luxury residential properties were widely sought after by both investors and end-users. There is a scarcity of luxury homes in Hong Kong, which boosted the cost of sites with luxury re-development potential and a house plot in Village Road fetched almost $2,000 per square foot. Overall, luxury residential real estate saw an increase in value of 14.1% for the year 2007, and prime luxury residential real estate outperformed all other property sectors by a substantial margin. Another record broken was a luxury villa in Severn 8 which sold for over $7,000 per square foot.

Alan Man, senior director of CBRE said, “We believe that Hong Kong’s robust economic fundamentals and favorable market considerations, including high land values, shortage of new supply and strong end-user as well as investor demand, will combine to sustain the rosy performance of luxury property prices achieved over the last 12 months. Although we see a stronger participation from overseas and Mainland players, both local users and investors will continue play a key role in the market. We expect prices of luxury residential properties, particularly those of premium grade premises, to appreciate further in 2008 by 20%-25% considering their rarity. Given the limited leasing options and the inflationary environment, luxury residential rents are expected to continue to rise, further compressing yields to around 3% over the near-term.

China Luxury Real Estate

Shanghai Luxury Real Estate

Shanghai saw a drop in transactions in the last quarter of 2007, but a 34% rise in prices year on year overall. The slowing of the market was largely due to an increase in available units, although the Tomson group’s launch of the Tomson Riviera Garden was extremely successfull, selling 94% in the month of release, at an average price of more than $4,000 per square meter. Once again, the luxury serviced apartment sector performed well. Several luxurious serviced residences were also launched around the same time, bringing over 300 more units on the market. 

• Citadenes Shanghai Biyun (English)
• Citadenes Shanghai Biyun (Chinese)
• Tomson Riviera Garden (English)
• Tomson Riviera Garden (Chinese)

Guangzhou Luxury Real Estate

Despite a substantial increase in supply and a levelling off in demand, Guangzhou luxury residential property values increased dramatically during 2007, although less so in the last quarter. Luxury villas saw the largest increase in capital value 2007 Q4 with an increase of 2.1%, although some 4,000 new units were added in the last quarter, causing the market to slow.

Singapore Luxury Residential Property Market

Singapore, like many luxury property markets, saw record prices. SC Developments, The Marq on Paterson Hill, for instance, sold out within hours of release – the most expensive unit selling for $31 million. The price of more than $5,000 per square foot set the new record. According to Merrill Lynch, the number of millionaires living in Singapore rose by 21% in 2007. Developers all over Singapore are tearing down older buildings to redevelop into luxury condominiums in the hope of repeating The Marq’s success.

Residential land with luxury real estate development potential set several new price records. Westwood apartments sold for $2,525 per square foot per plot. Luxury and super-luxury leased condominiums saw a massive 29% increase in costs in 2007, slowing only in the last quarter.

SC Global Developments

The Marq

Kuala Lumpur Luxury Property

Kuala Lumpur’s skyline will be completely redefined soon. The number of luxury developments currently under construction is quite staggering. OneKL and The Troika should be complete by 2009. OneKL set new standards in prices for luxurious accommodation when it was launched, but The Troika surpassed even that - 70% sold out already. Four of the eight penthouses were sold to foreign buyers. The 4 level, 21,000 square foot “Luxurious Penthouse,” reportedly sold for $18 million – a new record for KL. Foster & Partners, world renowned British architects, designed the building with GDP Architects.
More luxury developments in Kuala Lumpur include the DKBL Tower, The Capers, K Residence and The Four Seasons, all of which reached record prices in their release.

The KL luxury market is as strong as ever, once again pulling in foreign investment and the luxury serviced condominiums, such as The Marc Residence, showing the biggest gains in 2007.

CBRE Hong Kong Luxury Residential Market View 2007 Q4 (PDF Download)

CBRE China Market View Q4 (PDF Download)

One cannot think of the Luxury Property Development World without the name Donald Trump coming to mind. Despite Mr. Trump’s forays into other fields, such as being a TV personality and shaving people’s heads on prime time TV, his main strength is the ability to get things built, almost regardless of the obstacles.

A close brush with the bankruptcy courts back in the 1990’s caused him to either lose, or be forced to relinquish his interests in several on-going projects of the time, including a 50% interest in the Taj Mahal casino, 49% of the Trump Plaza hotel and the Trump Shuttle.

Mr. Trump also offers his name for other property developers to use and many developments bearing the Trump logo are actually not his own. This has caused a few issues and law suits in the past. For example, the Trump Tower Tampa was originally so successful that deposits were returned to the original purchasers and the prices increased. This was bad timing on their part and delays to the construction followed by the sub prime crisis bring doubts as to whether this will ever get completed. Needless to say, law suits have been filed. Mr. Trump is of the opinion that if he had been in charge, the thing would already have been built. Hard to argue with that as his track record for getting things done is excellent.

Mr. Trump has an impressive array of properties in his portfolio including several U.S golf courses and some well known Manhattan properties including the AXA Financial center and The trump Building at 40, Wall Street. Despite issues in the past, it’s hard not to be impressed with his achievements.

One recent development, the “World’s Best Golf Course,” in Scotland ran into trouble when the local authorities denied permission on the basis that the site was a designated “Site of Special Scientific Interest.” Several ecological and local groups including the RSPB, the Scottish Wildlife Trust and Sustainable Aberdeenshire, opposed the project from the beginning.

Far be it for me to tell anyone how to run their business, but one might think this sort of thing would need researching before going ahead with a plan of this magnitude. Still, it’s not over yet, and if Mr. Trump can bring enough pressure to bear (money), the development may well go ahead.

If I owned a piece of property in a designated wildlife refuge that was begging for a luxury hotel condo development, I certainly know whom I’d be calling upon to get permission and promote the project.

Donald Trump’s Blog