CDL cuts prices for Coco Palms launch

[reporter2]

http://www.businesstimes.com.sg/arch...aunch-20140519

Published May 19, 2014

CDL cuts prices for Coco Palms launch

82% of 600 units available at weekend launch have been sold

By Kenneth Lim


CITY Developments (CDL) sold most of its launch units in the Coco Palms project over the weekend after trimming the price tag, the developer said yesterday.

Coco Palms, a joint venture between CDL and Hong Realty (Pte) Ltd, sold about 490 units at an average price of $980 per square foot (psf) as at 3pm yesterday. The number of units sold represents 82 per cent of the 600 units available at the weekend launch, or 52 per cent of the 944 units in the entire development.

Separately, a representative for Aspial Corp subsidiary World Class Land said that its Waterfront@Faber project sold 80 units, but declined to disclose how many units were offered for launch. Against the project's entire stock, the developer sold 38 per cent of the 210 units in the entire development.

CDL said that it sold the Coco Palms units below initial expectations.

"Originally, we had planned to market this final premium plot at between $1,100 and $1,200 psf as it is the closest to the MRT station," CDL group general manager Chia Ngiang Hong said in a statement. "However, as the group had acquired this site at a historically low price and it has been part of our legacy landbank, this affords us the opportunity to price this launch attractively."

Coco Palms is a 99-year leasehold project in the Pasir Ris Grove neighbourhood. Units range from 463 sq ft one-bedroom units to 3,111 sq ft penthouses.

Take-up of the one and two-bedroom units were stronger on the opening weekend, CDL said in a statement.

About three-quarters of the buyers were Singaporeans.

Coco Palms sits on the fifth and final parcel of CDL's long-held landbank in the Pasir Ris Grove estate. That land has been under CDL's control for more than a decade.

CDL's D'Nest, which was launched in March, is 94 per cent sold to date. Data by the Urban Redevelopment Authority of Singapore show that two D'Nest units sold in April at a median price of $992 psf.

Waterfront@Faber, which sits on the banks of Sungei Ulu Pandan, is also a 99-year leasehold development with 199 apartments and 11 strata houses.

Indicative prices, set at the beginning of the month, started at $863,000 for a two-bedroom unit and $2.48 million for a strata-landed unit.

Singapore developers have been shaving prices amid a slowdown in home sales. CapitaLand, for example, in April sold 80 new units at Sky Habitat in Bishan at a median price of $1,377 psf, or a 13 per cent discount from its year-ago initial launch price.

[Photogguy]

...any idea when the lease starts? 10 years ago?.....if so, its like 10% of lease gone and 10% below what CDL initially wanted to sell?

[johnlee]

Buyers should check if the developer topped up the lease given more than a decade has gone by since acquiring the land

[beepbeep]

The lease thingy had been discussed many, many times since the the first thread was created. If its a fresh 99 years leasehold, CDL will not price it this way. I believe the 600 buyers who bought over last weekend would done their homework before buying.

[walkthetiger]

The lease thingy had been discussed many, many times since the the first thread was created. If its a fresh 99 years leasehold, CDL will not price it this way. I believe the 600 buyers who bought over last weekend would done their homework before buying.

...now all the OCR buyers care are the price....

[Photogguy]

....clever of them to spread rumours that the idicative prices before launch was about 10-15% higher.....making buyers feel that they got a good bargain at the eventual selling price........600 wrongs do not make a right.......

[beepbeep]

....clever of them to spread rumours that the idicative prices before launch was about 10-15% higher.....making buyers feel that they got a good bargain at the eventual selling price........600 wrongs do not make a right.......

So what is the right thing to show the 600 are wrong?

[edwinleeap]

So what is the right thing to show the 600 are wrong?

Right stems from opinion, Wrong comes from consensus.

[teddybear]

We will know by looking at its resale price 10 years down the road compared to those of its neighbours..........

So what is the right thing to show the 600 are wrong?

[Yuki]

We will know by looking at its resale price 10 years down the road compared to those of its neighbours..........

I used to think it was not a recommended project due to the shorter lease...

however, I tried to think another way.

Treat it as the buyers own it after 10 years have lapsed? i.e. its like buying 2nd hand with all the goodies. brand new as 1st owner..lower price as compared to the current owner asking price?

Of course the downside is the shorter time span reselling it to the 3rd owner ...coz shorter lease meaning lesser loan amount. Hence asking price is sort of capped. Plus of course the darn bay windows.

Plus, someone told me that only location and entry price matters. No need to care about the lease. True or not? I dunno...

Btw, not invested in coco palms.

I would love to hear alternate views on this special case.