Slow start for walk-in-and-buy phase of Centrale 8

[mr funny]

http://www.channelnewsasia.com/stori...140077/1/.html

Slow start for walk-in-and-buy phase of Centrale 8

By Ong Dai Lin, TODAY | Posted: 10 July 2011 2257 hrs


SINGAPORE: It was a slow start to the first weekend of the walk-in-and-buy phase of the most expensive Design, Build and Sell Scheme (DBSS) flats to hit the market.

When MediaCorp visited the showroom of Centrale 8 on Saturday at 6pm, around 20 families were viewing the project. A board which listed the availability of the 708 units in the project, said around 35 per cent of the flats have been sold since the project was opened for sale.

Potential buyers that MediaCorp spoke to said they were at the showroom to see if prices have fallen further and were cautious about selecting a flat because of the high prices.

40-year-old Zack Henry said: "It (Centrale 8) is near the MRT and Tampines Mall but the flats are expensive. I might as well go for an Executive Condominium (EC)."

Another potential buyer, who only wanted to be known as Mr Wong, said: "The price is high but it is not a private property. It is a Housing Development Board (HDB) project with HDB restrictions and there are no other amenities."

"We like the project because of the location. But if the price remains high, we'll just stay out."

Centrale 8, developed by the Sim Lian Group, made the news last month with a record asking price of S$880,000 for a DBSS flat, triggering an outcry that the price was nearly that of executive condominiums.

Property analysts said they are surprised at the low take-up rate and said the negative publicity about the high prices of the project may have affected buyers' sentiments.

SLP International's head of research, Mr Nicholas Mak, said: "They have to find out why sales is slow and address the problem…if sales slow down, it's difficult to regenerate interest in the project."

He added: "Usually during the first weekend when sales is opened to public, there is an overwhelming response in the showroom."

Mr Mak said when faced with slow sales, developers could reduce prices and increase the value of the flats by providing finishes, like marble instead of tiles.

Dennis Wee Group director Chris Koh said: "The government announcements to review the DBSS and EC schemes, and Sim Lian's high prices could cause some to take a step back - and wait and see."

He noted that if Sim Lian decreased its flat prices now, he will be "concerned for those who have already bought."

"And it affects the creditability of the company. So it's not about cutting prices. It is about winning back the confidence of buyers. We may have to wait a while to better gauge the response."

- TODAY

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http://www.channelnewsasia.com/stori...139941/1/.html

Response to walk-in-and-buy phase of Centrale 8 below expectations

By Evelyn Lam and Dylan Loh | Posted: 10 July 2011 0012 hrs


SINGAPORE : Response appears to be weak at Saturday's walk-in-and-buy phase of Centrale 8 flats.

The project in Tampines falls under the Design Build and Sell Scheme (DBSS) and has recently drawn flak for the high pricing of units.

The initial price set a record S$880,000 for five-room flats, but developer Sim Lian Group said it was an 'indicative price' and lowered it to S$778,000.

When doors opened for the walk-in phase at 10am, only about 20 people turned up.

Analysts said that's way below expectation compared to other DBSS projects, given also that units were sold on a first-come-first-served basis.

They also said the response could be due to the government's move to stop land sales for now under DBSS projects, leading to uncertainty over property values for this sort of public housing in future.

- CNA /ls