CDL cuts prices of Livia units by about 5%

http://www.straitstimes.com/Money/St...ry_337734.html

February 13, 2009 Friday

CDL cuts prices of Livia units by about 5%

By Joyce Teo, Property Correspondent

http://www.straitstimes.com/STI/STIM...AGES_LIVIA.jpg
CDL is selling 30 Livia units at an average of $620 psf, around $30 psf less than the initial launch price last July. -- PHOTO: CDL

CITY Developments (CDL) plans to launch 30 units of its 724-unit Livia condominium project in Pasir Ris at an average of $620 per sq ft, about 5 per cent or $30 psf below the initial launch price last July.

The sale of the 30 three- to four-bedroom units starts tomorrow. Another 30 apartments may be released at the same price later.

The new pricing, announced yesterday, puts the price range of a three-bedroom unit at the 99-year leasehold condo from $752,000 to about $800,000.

This compares with last year's price of $793,000 and up for a three-bedder.

The developer will not be compensating earlier buyers for the price difference, given that the market has taken a big turn for the worse.

'This adjustment in the long run will be better for everybody,' said a CDL spokesman. The area's values will rise in future as new developments are completed, he said.

CDL's group general manager, Mr Chia Ngiang Hong, said the company had held back from selling new phases of Livia because of poor market conditions in the light of economic uncertainty.

The change of mind is due to revived interest being expressed by visitors to the development's showflat, he said.

'The company senses a renewal of market interest and improvement in buyer sentiment. More people have been visiting our showrooms, and many have made offers for units that have yet to be launched,' said Mr Chia.

The re-pricing of Livia units comes swiftly after the preview success of mass-market condo Caspian in Jurong West. Frasers Centrepoint has already sold 350 units of its 712-unit condo since last Thursday. The project was initially priced at $580 psf on average.

Livia met with a favourable response when it was released in July last year, with buyers scooping up 160 units of the first 200 apartments released in just a few days. CDL has so far released 360 units and sold 340, leaving 384 units available for sale.

http://www.todayonline.com/articles/301934.asp

Friday, February 13, 2009

Price war in the works?

CDL offers Valentine’s Day discount for Pasir Ris project

Christie Loh and Esther Fung

[email protected]


AT A time when consumers think twice before forking out money for big-ticket items, a major property developer here is dangling outright discounts to lure buyers. And if customers do bite, the move may mark the start of a price war, say industry observers.

Yesterday, Mainboard-listed City Developments Limited (CDL) fired the first salvo by revealing a 5-per-cent discount for selected units at Livia, a mass-market condominium in Pasir Ris.

The announcement was decibels louder than usual: Up until now, developers have largely offered discounts to walk-in customers, rather than publicly trumpeting the promotions. CDL is expected to be taking out advertisements for its special offer over the next few days.

The occasion for the promotion? Valentine’s Day tomorrow, according to CDL’s press release obtained by Today.

Cupid, however, is not going to be the clincher for customers, said Colliers International’s research and consultancy director Tay Huey Ying. It’s the “pretty attractive pricing”, she said.

Livia’s special price is about $620 per square foot (psf), said CDL, versus the average of $650psf during the phase-one launch in July last year when 340 of the 360 units released were sold. This equates to a discount of 5 per cent.

CDL “senses a renewal of market interest and improvement in buyer sentiment”, said group general manager Chia Ngiang Hong.

Although CDL said it would apply the offer to just 30 units of the 99-year leasehold project, the reality is likely to see some 60 units let go at that price, a marketing agent said, on condition of anonymity.

That is a small number compared to the 384 units still unsold. But observers say the V-Day offer may be a starting point, to test if the price is “right”. Said an industry insider: “People have been coming to showflats and just nibbling. Singaporeans want to see prices move.”

A three-bedroom unit at Livia will now cost $752,000, CDL said, versus the phase-one price of $793,000.

How long will the special offer last?

“A limited period,” CDL said.

Could this spark a price war? CDL’s competitors declined comment yesterday.

Colliers’ Ms Tay said developers were likely to resort to cutting prices — and hence eroding their profit margins — “only for projects that they’re keen to move in order to ease cash flow”.

It’s more likely that developers will roll out “a combination of competitive pricing and innovative marketing strategies”, said Ms Tay.

Demand, however, is certainly there. Crowds yesterday thronged Alexis, a freehold condominium near Queenstown MRT station, during the first day of its launch. By evening, more than half of the 293-unit project was sold, developer EC Prime told Today.

Agents there dangled a big sweetener: Discounts of as high as 28 per cent, resulting in prices between $850 and $1,150psf.

While there were interested owner-occupiers, some people were overheard asking: “What are my chances of flipping this?”

Last week, Frasers Centrepoint sold 300 units of the 712-unit Caspian project in Jurong West within the first three days for an average of $580 psf. Most of the buyers were Singaporean HDB upgraders.

Livia offering 5% dicount....too bad those who bought earlier will not be compensated.

What happen if still no Buyers after 5 % discount, most likely to drop some more ;)

Actually, this strategy by CDL is just to test water on what price buyers will commit (5% discount just on valentines day?? WTF).

By releasing only about 30 units at 5% discounted (from list price), If buyers bite and all these 30 units are cleared by the next few days, then they know the pricing threshold buyers would commit.

However, if these 30 units aren't taken up at all, then CDL might have to go back to the drawing board in revising the list price.. (discount should be more than 5% then). During 2001~2002 when developers can't move their stock, what they did was gave out 10-15% discounted, absorbed stamp duties, gave out renovation vouchers.. all that jazz.

So all you buyers out there. If you are really interested in Livia, my advice to you is to IGNORE this bait (5%), wait for further price down initiatives 3-6 mths down the road. Teamwork!!!

Wow... playing poker card with giant CDL.... don't play, play...ah..:tsk-tsk:

Definitely cannot understand buyers of nowadays, unless you are really in hurry for new home.....else just wait for at least another 6 to 12 mths. Everything are just so crystal clear that there is no way the ppt price can go upwards but only downwards, so why bother to commit at this pt of time when you are holding to biggest trump card of entire situation, TIME :spliff:

Quote:

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Originally Posted by WolleyDragon

Actually, this strategy by CDL is just to test water on what price buyers will commit (5% discount just on valentines day?? WTF).

By releasing only about 30 units at 5% discounted (from list price), If buyers bite and all these 30 units are cleared by the next few days, then they know the pricing threshold buyers would commit.

However, if these 30 units aren't taken up at all, then CDL might have to go back to the drawing board in revising the list price.. (discount should be more than 5% then). During 2001~2002 when developers can't move their stock, what they did was gave out 10-15% discounted, absorbed stamp duties, gave out renovation vouchers.. all that jazz.

So all you buyers out there. If you are really interested in Livia, my advice to you is to IGNORE this bait (5%), wait for further price down initiatives 3-6 mths down the road. Teamwork!!!

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I cant agree more.. to add another point, list price is nothing but a price set by developer. Is that price realistic? If it was set too high to begin with, what's the use of getting 30% discount :doh:

Quote:

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Originally Posted by kale

Definitely cannot understand buyers of nowadays, unless you are really in hurry for new home.....else just wait for at least another 6 to 12 mths. Everything are just so crystal clear that there is no way the ppt price can go upwards but only downwards, so why bother to commit at this pt of time when you are holding to biggest trump card of entire situation, TIME :spliff:

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Quote:

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Originally Posted by Water Lover

Wow... playing poker card with giant CDL.... don't play, play...ah..:tsk-tsk:

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If Giant CDL so great, don't need to resort to gimmicks to sell units, can just open stall wait for buyers.

However, apparently, giants aren't so great after all, times are bad and so cannot be so ya ya papaya..