http://www.straitstimes.com/archive/...ekend-20140519

ATTRACTIVE PRICING

Robust sales at two condo launches at the weekend

One key factor may be pricing, say analysts, who see rebound continuing

Published on May 19, 2014 1:03 AM

By Tee Zhuo


BRISK sales at weekend launches of two 99-year leasehold condominiums at Pasir Ris and West Coast suggest that the recent rebound in private home sales could be set to continue. Analysts said the robust demand was a good sign, but attractive pricing probably played a large part.

Coco Palms sold 490, or 82 per cent, of the 600 units released as of 3pm yesterday, according to City Developments (CDL), which is developing the project with Hong Leong Holdings and Hong Realty. All one-bedroom units released at the 944-unit project near Pasir Ris MRT station were sold out.

Waterfront@Faber - World Class Land's West Coast project - did moderately well. While final sales numbers were not ready by press time, the last count as of 7pm yesterday put the figure at 80 of the project's 210 units.

Over 300 people had turned up to ballot for homes when The Straits Times visited the launch on Saturday afternoon. Similarly large crowds were also reported for Coco Palms.

Ms Alice Tan, research head at Knight Frank Singapore, said developers recognise that buyers are "very selective" given the cooler property market and are adjusting prices accordingly.

"The disparity between buyers' expected prices and developers' pricing is narrowing," she added.

PropNex marketing manager Carolyn Goh said developers would not be pricing units beyond $1,300 per sq ft (psf), or "what the market can command".

Coco Palms units - which range from one- to five-bedders - averaged about $980 psf, which Ms Goh said was "very attractive". Prices started at $498,000 for a 463 sq ft one-bedder.

First-time buyer Jefper Ng, 25, got his one-bedder at a slightly higher price of $516,000, but still felt it was value for money. He was buying to invest and will likely rent out his unit. "It is hard to find such a price now, especially for a project close to an MRT station," he said.

Ms Tan said would-be landlords could be drawn to Coco Palms' proximity to international schools such as the United World College of South East Asia.

Waterfront@Faber units were between $1,100 psf and $1,350 psf, which Ms Tan noted is "more realistically priced" compared to other condominiums in the west.

For example, MCL Land's sell-out condo J Gateway had units priced $1,480 psf on average. But the project has a better location near the Jurong East transport interchange, while residents of Waterfront@Faber will need to walk 20 minutes to reach the nearest MRT station at Clementi.

Buyers who spoke to The Straits Times were mostly looking to stay in their new homes but had mixed sentiment on the prices. Accountant Elaine Tan, 52, bought a one-bedroom Coco Palms unit at $1,218 psf - higher than the $980 psf average - but said it was "reasonable".

But a 32-year-old, who wished to be known only as Jason, felt the over $850,000 he paid was "slightly more" than what he had expected for a two-bedder at Waterfront@Faber. The project sold mostly larger units to families who already live in the west.

Knight Frank's Ms Tan said those living in the region want to be part of the "West growth story". She cited developments including new Jurong retail malls such as Jem and Westgate.

PropNex's Ms Goh noted that the total debt servicing ratio (TDSR) framework has allowed more "genuine" buyers to enter the market. Introduced in June last year, TDSR restricts banks from approving a home loan if the applicant's monthly debt obligations, including other mortgages and car loans, exceed 60 per cent of his gross monthly income.

The response at the two launches follows similar demand for Hong Leong Holding's 845-unit Commonwealth Towers, jointly developed with CDL, which has reportedly shifted about 270 units.

But another suburban condo is doing less well. Wheelock Properties' 698-unit The Panorama in Ang Mo Kio has sold only 56 of 120 offered units as of end-April since its January launch. Smaller units are expected to be relaunched later this month at a discount of around 10 per cent.

Nevertheless, last month's new private home sales here still jumped 55 per cent to reach 745.

But developers cannot rejoice just yet. Ms Tan noted that pre-TDSR homes sales averaged 1,500 to 1,600 per month.

[email protected]