Over 300 Caspian units sold, price up 3.5%

http://www.businesstimes.com.sg/sub/...17923,00.html?

Published February 7, 2009

If it's priced well, it still sells

Frasers Centrepoint brings cheer to market with sale of 80 units at Caspian's preview. By Kalpana Rashiwala


THE year's first major release of a private housing project has shown that there's still demand for projects priced attractively. Frasers Centrepoint had sold close to 80 units at its Caspian condo near Jurong Lake by late last night, the company's CEO, Lim Ee Seng, told BT.

http://www.businesstimes.com.sg/mnt/...ES_KRCASP7.jpg
LOCAL DEMAND
About 70 per cent of buyers of units at Caspian are estimated to be HDB upgraders. Singaporeans account for more than 85 per cent of buyers

About 70 per cent of buyers are estimated to be HDB upgraders; the rest had private addresses. Singaporeans accounted for more than 85 per cent of buyers. Only a fifth of the buyers so far have opted for the interest absorption scheme offered by the developer. This means that they pay 3 per cent higher for their units.

The project is priced at $580 per square foot (psf) on average for buyers who opt for normal progress payment.

Property market watchers expect sales in the 99-year-leasehold condo next to Lakeside MRT Station to pick up steadily over the weekend.

Frasers Centrepoint had meant to open its showflat for sales to staff on Thursday, but decided to start selling in the evening to other buyers who had started gathering outside. The average price of $580 psf - or $598 psf for those who opt for interest absorption - is for the 250 units being marketed in the first phase.

Knight Frank executive director Peter Ow, whose firm is not involved with marketing the project, said: 'The response is very encouraging in today's market. It goes to show that there's still demand in the market, as long as the project is priced attractively. Those who want the location will buy. I believe buyers would be buying predominantly for owner occupation.'

The 712-unit Caspian is being built next to LakeHolmz, an earlier condo by Frasers Centrepoint that was completed about four years ago. Units in LakeHolmz are going for about $600 psf on average in the resale market, while further away, units at The Lakeshore, which was completed more recently, are fetching an average price of around $750 psf.

Frasers Centrepoint indicated that 80 per cent of the Caspian units sold are two and three-bedders.

A strong draw of the project is its location in the Jurong Lakeside District, for which the government has big growth plans as a unique destination for business and leisure, and a vibrant regional centre serving the west region of Singapore. The project's location next to Lakeside MRT Station will also receive a boost from the extension of the East-West MRT Line with the opening of new stations this month.

Frasers Centrepoint's Mr Lim said: 'We're happy with the positive response generated by Caspian, which will hopefully create some impetus to the otherwise sluggish market.

'We did a thorough market research and survey, which resulted in a substantial number of potential buyers indicating firm interest within a certain price range. We then launched below this price range to further boost the demand.'

He did not indicate what the surveyed average price range was, but BT understands that it was in the low to mid-$600 psf range.

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I was there and it was crazy. Agent there told me people were flipping like they flip burgers at the pasar malams. Said one unit I was asking about was going for $20k higher than when it was released a day earlier. People never learn do they..sad.

http://www.businesstimes.com.sg/sub/...17988,00.html?

Published February 9, 2009

Over 300 Caspian units sold, price up 3.5%

By KALPANA RASHIWALA


FRASERS Centrepoint yesterday continued to chalk up steady sales at its Caspian condo even after it raised prices by about $20 per square foot, or about 3.5 per cent.

It sold over 100 units yesterday and by last night, total sales had crossed 300 units - a remarkable result considering the current market gloom.

Frasers Centrepoint began selling the 99-year leasehold condo next to Lakeside MRT Station near Jurong Lake last Thursday evening.

By Saturday night, sales hit the 200-unit level for the initial batch of 250 units priced at $580 psf on average, and that was when Frasers Centrepoint decided to release a new batch of 100 units yesterday morning at the higher price, averaging $600 psf.

Frasers Centrepoint chief executive officer Lim Ee Seng said: 'We've had to be very careful about the price adjustment because we don't want to turn off the tap. We have a good product, there's demand for this particular product in this particular location. Our launch has shown where the base price is for the mass market.'

'We've been monitoring sales since adjusting prices. So far, it seems to be OK,' he added.

'If we can hit sales of 350 units, that will be enough to fund construction of the project,' Mr Lim revealed.

Sales of 350 units would also be roughly half the total 712 units in the project, and market watchers reckon Frasers Centrepoint may take a breather in selling further once it reaches this level.

Property consultants were not surprised by the upward price adjustment.

'Typically, that's what developers do when there's demand,' said CB Richard Ellis executive director Joseph Tan.

BT understands that at the initial $580 psf average selling price, Caspian would be just marginally profitable. Frasers Centrepoint said that about 78 per cent of Caspian's buyers to date are HDB upgraders.

The remaining 22 per cent have private addresses. Three quarters of the buyers live in the western part of Singapore.

Singaporeans accounted for more than 90 per cent of buyers.

Around 30 per cent of buyers have opted for the interest absorption scheme being offered by Frasers Centrepoint.

They will pay 3 per cent more for their units in exchange for not having to make any further payment (beyond the initial 20 per cent) until the project receives Temporary Occupation Permit.

http://www.straitstimes.com/Money/St..._335872_1.html

February 9, 2009 Monday

Frasers Centrepoint sells 300 units of Jurong West condo


THE first major condominium launch this year attracted very strong interest at its preview, with crowds packing its Jurong West showflat three days beginning last Friday.

Property developer Frasers Centrepoint said it had sold 300 units at the 712-unit Caspian by 9pm yesterday. It sold out the first batch of 250 units at the condo, which was priced at $580 per square foot (psf), by the afternoon. It subsequently released another 100 units with better facing, and priced them at $20 psf more.

The 300 units were sold at between $340,000 and $990,000. Most of the buyers were Singaporean HDB upgraders. Foreigners and permanent residents accounted for just 6 per cent of the sales. About 31 per cent of the buyers opted for the interest absorption scheme. They paid 3 per cent more on the purchase price.

The developer said the response to the private preview last Friday was so keen it kept the Caspian showflat open past midnight, and sold 80 units. It sold another 120 units last Saturday.

'There is pent-up demand for new properties,' said Chesterton Suntec International's head of research and consultancy, Mr Colin Tan.

A market watcher said the $580 psf price for Caspian is not exactly very cheap but some buyers are probably hoping that the development plans for the Jurong area will help to raise the value of their properties in the future.

The 99-year leasehold condo is near Lakeside MRT station in Jurong, a new growth area in Singapore. Caspian was also priced cheaper than nearby condos Lakeholmz and Lakeshore. Caveats lodged show Lakeholmz units were traded in the third quarter of last year, at $564 to $626 psf. Lakeshore units were going for around $750 psf.

Recent deals for The Centris at Boon Lay, one MRT station away, were done at an average of $550 psf, according to caveats lodged last month.

Frasers Centrepoint chief executive Lim Ee Seng said the brisk sales for Caspian showed there is demand for mass market projects at the right price. He said: 'A well-located, reasonably-priced mid-market development always has its following.'

JOYCE TEO

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Originally Posted by Boon, 9 February 2009

I was there and it was crazy. Agent there told me people were flipping like they flip burgers at the pasar malams. Said one unit I was asking about was going for $20k higher than when it was released a day earlier. People never learn do they..sad.

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Did you pick up any of the burgers?