Shanghai: The most expensive apartment complex in the country has attracted
plenty of attention but not many deals since its first block was put on sale
A general view shows the Huangpu River and its high
raised buildings along the bank, out of the living room of an apartment at
the Tomson's Riviera project in Shanghai July 19, 2006. [Reuters]
Tomson Riviera has sold only two of 220 units. Due to gloomy prospects for
future sales, the developer finally decided on Wednesday to withdraw the offer
to sell the second block as a whole.
A statement from Tomson Group said it would suspend the public tender for its
block B because of the strict government policies on foreign investment. The
policies stipulate that foreign investors cannot buy property unless they set up
a branch in the country.
On July 3, Tomson Group put block B of Tomson Riviera up for public tender at
nearly 4 billion yuan (US$500 million). Since then, the group has been promoting
the block in New York, London, Dubai and Singapore. Tomson Group said that it
had received many enquiries about the block, but the company deemed them
Michael Hart, head of research at Jones Lang LaSalle Shanghai, said Tomson
had set the price of the project at an extremely high level and that it wouldn't
grow in the next 5 to 10 years. "It is almost twice as expensive as projects
nearby," Hart said.
A general view shows the Huangpu River and its high raised
buildings along the bank, out of the dinning room of an apartment at the
Tomson's Riviera project in Shanghai July 19, 2006. [Reuters]
Tomson Riviera, comprising four blocks of 40 to 44 storeys each, is located
on the east bank of the Huangpu River, a stone's throw from the famous Oriental
Pearl Tower and Jinmao Tower. It boasts the best view at the premier spot and
the most luxurious decor.
Tomson put the first block up for sale last October with the most expensive
unit at 170 million yuan (US$21.25 million) and the second for sale as a whole
It did not sell a single unit until August. A Southeast Asian buyer purchased
a 979-square-metre duplex for 130 million yuan (US$16.25 million). It sealed the
second deal recently at 69 million yuan (US$8.62 million). On Wednesday, it
withdrew the public tender.
According to the Oriental Morning Post, Tomson Group will continue selling
the first block and block C, and will start renting block B next year. But
finding tenants may not be easy either. Hart estimated that rental for a unit
could be at least US$12,000 a month. "There may be many rich people interested
in the apartments, but not enough to fill the whole building," he