View Full Version : Will Sky Habitat price cut nudge others?
Sabo land???
CapitaLand will relaunch the Bishan project priced from $1,370 psf
AMID mounting pressure from upcoming condominium launches, at least one condo project will be re-launched at lower prices. CapitaLand's Bishan project Sky Habitat will start at $1,370 per square foot (psf) on April 19, says a promotional pamphlet from one of its marketing agents, Knight Frank.
This is a drop from two years ago, at the project's first launch, when prices ranged from $1,435 to $1,893 psf. The average selling price then was said to be about $1,650 psf, after taking into account the initial 3 per cent discount given to all buyers. It was what gave this development designed by Moshe Safdie the reputation of being the most expensive suburban condo here.
Only 36 per cent of its 509 units have been sold, as the project nears TOP (temporary occupation permit) next year. With the re-launch, a one-bedroom cum study could start from $1.05 million or $1,485 psf, down from about $1,600 psf previously.
This is not the first time CapitaLand has pared prices for its residential projects; it did so for Interlace in Alexandra and D'Leedon in the former Farrer Court Estate. Its latest move has, however, set observers thinking about whether others will follow suit.
SLP International executive director Nicholas Mak said that the repricing reflects the "new market reality", as developers anticipate new competing launches soon. "If it does not do something to increase sales or the rate of sales, it will end up getting stuck with unsold units as the project nears completion."
But Christine Li, head of research and consultancy at OrangeTee, believes that drastic price cuts are unlikely. "Developers have made enough profits in the last few years and so are in no hurry to do so."
Prices are more likely to be cut for high-end projects because of waning demand, but mass-market projects should hold up well, she added.
Other analysts said that larger developers have more holding power for unsold inventory than smaller developers, so the fact that CapitaLand is among the first to re-launch a project at tamped-down prices comes as a surprise. CapitaLand is developing Sky Habitat with Mitsubishi Estate Asia and Shimizu Investment (Asia).
DBS Group Research analyst Lock Mun Yee said that it was unlikely that CapitaLand would need to do any write-downs on the project, though margins could be affected if the average selling price falls. Her estimated breakeven price for the project was in the "low $1,300s". "They've already locked in a portion at higher prices, so they don't need to take the drastic action of writing it down. Asset turnover is also an important consideration. You don't want to sit on inventory."
Mr Mak said that the repricing is not an issue of holding power, but is in line with the "conveyor belt" strategy to move sales in both good times and bad, which tends to pay off in the long run.
Sky Vue, CapitaLand's adjacent project, has sold close to 70 per cent of its 694 units since its launch last September; its 2013 average price was $1,500 psf and its median price in February was $1,457 psf.
phantom_opera
11-04-14, 06:23
psf same as Lakeville but quantum much bigger .. :rolleyes:
Interesting! Price drop by how much?
Sabo earlier buyers or just lousier units? :beats-me-man:
Can just chop each unit into 2 much smaller units and then can sell at higher $PSF than Lakeville already! Capitaland didn't learn the lesson? :p
psf same as Lakeville but quantum much bigger .. :rolleyes:
Start from, so where does the price range end at. That is a more interesting figure.
Start from, so where does the price range end at. That is a more interesting figure.
should be similar to dLeedon and Interlace, the price for some less popular units will be lowered to create a "hot" sentiment, but some good facing, high floor units will be still quite expensive.
princess_morbucks
11-04-14, 09:32
Interesting! Price drop by how much?
Sabo earlier buyers or just lousier units? :beats-me-man:
Can just chop each unit into 2 much smaller units and then can sell at higher $PSF than Lakeville already! Capitaland didn't learn the lesson? :p
Was looking at the past prices on URA website.
The cheapest psf then was $1435 psf for a unit 1249 sq ft on a low floor (#01 to #05).
Total of 509 units and so far 250 units launched and 182 units sold as of Jan 2014.
So this new price ($1370 psf) is truly lower!
That is about 4 to 5 % discount. :beats-me-man:
bargain hunter
11-04-14, 10:07
meanwhile, nearby at the newly completed Trevista in toa payoh..................
#11-01 Bought in nov 2009, a 2+study unit of 1012 sq ft purchased for 1.025m..........
has been put up for mortgagee sale by Jones Lang Laselle on 24th April.
princess_morbucks
11-04-14, 10:15
Retweeted by The Business Times
Cai Haoxiang @HaoxiangCaiBT 26m
Sky Habitat starts coming down to earth, but coming interest rate rise still looms over property market http://www.businesstimes.com.sg/premium/singapore/will-sky-habitat-price-cut-nudge-others-20140411 …
AMID mounting pressure from upcoming condominium launches, at least one condo project will be re-launched at lower prices. CapitaLand's Bishan project Sky Habitat will start at $1,370 per square foot (psf) on April 19, says a promotional pamphlet from one of its marketing agents, Knight Frank.
This is a drop from two years ago, at the project's first launch, when prices ranged from $1,435 to $1,893 psf. The average selling price then was said to be about $1,650 psf, after taking into account the initial 3 per cent discount given to all buyers. It was what gave this development designed by Moshe Safdie the reputation of being the most expensive suburban condo here.
Only 36 per cent of its 509 units have been sold, as the project nears TOP (temporary occupation permit) next year. With the re-launch, a one-bedroom cum study could start from $1.05 million or $1,485 psf, down from about $1,600 psf previously.
This is not the first time CapitaLand has pared prices for its residential projects; it did so for Interlace in Alexandra and D'Leedon in the former Farrer Court Estate. Its latest move has, however, set observers thinking about whether others will follow suit.
rymccondo77
11-04-14, 13:00
Less than 40 % sold - time for "desperate" measures to move the remaining units.
Adopted the wrong strategy with renowned architects' design at wrong location. First at Interlace, DLeedon and then this one. :tsk-tsk:
Retweeted by The Business Times
Cai Haoxiang @HaoxiangCaiBT 26m
Sky Habitat starts coming down to earth, but coming interest rate rise still looms over property market http://www.businesstimes.com.sg/premium/singapore/will-sky-habitat-price-cut-nudge-others-20140411 …
walkthetiger
11-04-14, 13:29
Adopted the wrong strategy with renowned architects' design at wrong location. First at Interlace, DLeedon and then this one. :tsk-tsk:
..cheaper?... likely to compete for tenants with 70% unsold......
phantom_opera
11-04-14, 17:28
wrong timing, NASDAQ profit taking everyday ... must wait STI chiong until 3300-3400 mah :banghead:
lol. The buyers for new ocr properties the last one year will be sibei dulan. One by one the newer ones slowly slowly cut price.
sky habitat is defiantly a better by that that watertown joke.
Can start buying now.
I think still have to wait awhile. more projects with discount would be coming!:D
I think they will have to give more discounts as the units here are quite big, therefore huge quantum compared to sky vue.
Now they are trying to market their 1+ study as a 2 bedder. :doh:
phantom_opera
13-04-14, 21:38
they want to catch those failed to ballot Lakeville
princess_morbucks
13-04-14, 21:41
I think they will have to give more discounts as the units here are quite big, therefore huge quantum compared to sky vue.
Now they are trying to market their 1+ study as a 2 bedder. :doh:
Every morning I hear the radio advertising the 1+ study and how you can convert it into a 2 bedder.
proud owner
13-04-14, 22:35
why the need to cut price ?
isn't Bishan a Prime-r location ?
Bishan is after all a HDB-centred town............. :beats-me-man:
why the need to cut price ?
isn't Bishan a Prime-r location ?
Prime also cannot anyhow call for price. 1600 can get city fringe.
Bishan is after all a HDB-centred town............. :beats-me-man:
the many good schools nearby will lend support to bishan price.
Bishan is after all a HDB-centred town............. :beats-me-man:
Peng satay lah you.
Swaying like an old palm tree
Peng satay lah you.
Swaying like an old palm tree
I thought its flip prata?
http://www.businesstimes.com.sg/archive/friday/premium/singapore/will-sky-habitat-price-cut-nudge-others-20140411
Published April 11, 2014
Will Sky Habitat price cut nudge others?
CapitaLand will relaunch the Bishan project priced from $1,370 psf
By lynette khoo and cai haoxiang
[email protected]
[email protected]
AMID mounting pressure from upcoming condominium launches, at least one condo project will be re-launched at lower prices. CapitaLand's Bishan project Sky Habitat will start at $1,370 per square foot (psf) on April 19, says a promotional pamphlet from one of its marketing agents, Knight Frank.
This is a drop from two years ago, at the project's first launch, when prices ranged from $1,435 to $1,893 psf. The average selling price then was said to be about $1,650 psf, after taking into account the initial 3 per cent discount given to all buyers. It was what gave this development designed by Moshe Safdie the reputation of being the most expensive suburban condo here.
Only 36 per cent of its 509 units have been sold, as the project nears TOP (temporary occupation permit) next year. With the re-launch, a one-bedroom cum study could start from $1.05 million or $1,485 psf, down from about $1,600 psf previously.
This is not the first time CapitaLand has pared prices for its residential projects; it did so for Interlace in Alexandra and D'Leedon in the former Farrer Court Estate. Its latest move has, however, set observers thinking about whether others will follow suit.
SLP International executive director Nicholas Mak said that the repricing reflects the "new market reality", as developers anticipate new competing launches soon. "If it does not do something to increase sales or the rate of sales, it will end up getting stuck with unsold units as the project nears completion."
But Christine Li, head of research and consultancy at OrangeTee, believes that drastic price cuts are unlikely. "Developers have made enough profits in the last few years and so are in no hurry to do so."
Prices are more likely to be cut for high-end projects because of waning demand, but mass-market projects should hold up well, she added.
Other analysts said that larger developers have more holding power for unsold inventory than smaller developers, so the fact that CapitaLand is among the first to re-launch a project at tamped-down prices comes as a surprise. CapitaLand is developing Sky Habitat with Mitsubishi Estate Asia and Shimizu Investment (Asia).
DBS Group Research analyst Lock Mun Yee said that it was unlikely that CapitaLand would need to do any write-downs on the project, though margins could be affected if the average selling price falls. Her estimated breakeven price for the project was in the "low $1,300s". "They've already locked in a portion at higher prices, so they don't need to take the drastic action of writing it down. Asset turnover is also an important consideration. You don't want to sit on inventory."
Mr Mak said that the repricing is not an issue of holding power, but is in line with the "conveyor belt" strategy to move sales in both good times and bad, which tends to pay off in the long run.
Sky Vue, CapitaLand's adjacent project, has sold close to 70 per cent of its 694 units since its launch last September; its 2013 average price was $1,500 psf and its median price in February was $1,457 psf.
proud owner
14-04-14, 17:22
the many good schools nearby will lend support to bishan price.
I am not familiar ... care to share what are the good schools within 1 km there ?
I am not familiar ... care to share what are the good schools within 1 km there ?
I think he referring to Raffles Institute and Raffles Girl School.
I think he referring to Raffles Institute and Raffles Girl School.
catholic high, kuo chuan pri oso got standard one.
Adopted the wrong strategy with renowned architects' design at wrong location. First at Interlace, DLeedon and then this one. :tsk-tsk:
And also their interior is another factor to the sale results,
should provide with a better finishes at these price tag.
Allthepies
14-04-14, 18:45
1.05mil for 1+study lowest available floor in this suburban location...ha crazy crazy price....capitaland huat ah....
proud owner
16-04-14, 00:06
catholic high, kuo chuan pri oso got standard one.
ok
so only 1 primary school ... that parents WOULD die die buy properties within 1km radius ...
the rest are higher level ...
do parents still buy properties ( move house ) to be near secondary schools ?
so limited support from a 'school' perspective for this condo
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