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Thread: Price cuts help Far East sell 3 projects: sources

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    Default Price cuts help Far East sell 3 projects: sources

    Published April 17, 2008

    Price cuts help Far East sell 3 projects: sources

    By KALPANA RASHIWALA


    PROPERTY heavyweight Far East Organization has achieved encouraging sales for three 99-year leasehold suburban projects after it trimmed their prices by about 3-5 per cent shortly after the Chinese New Year period, sources say.

    BT understands that the price cuts were aimed at drawing bargain hunters who were keen on the three completed developments - La Casa executive condo in Woodlands, and two private condos, The Lakeshore in Jurong and Hillview Regency in Bukit Batok.

    'Far East cut prices because it was pretty sure of the demand for its product. There were bargain hunters out there holding steady jobs and who've enjoyed a few years of good bonuses. Mortgage rates are also low today. But potential buyers had to be given a little incentive, because people expect softer prices as sentiment has weakened,' an industry observer said. 'It would have been pointless for Far East to have cut prices if there had been no demand as that would only have served to weaken confidence,' he added.

    Market watchers suggest that other developers could follow suit and help clear the current stalemate between buyers and sellers. After all, a modest price cut by developers in today's environment may not be greeted with panic, as in the 1998 property slump, as the Singapore economy is still growing, and the job market healthy.

    Far East is believed to have sold 50-plus units at The Lakeshore, around 20 units at Hillview Regency as well as the last 20-odd units at La Casa following the price cuts. Before the cuts, it had been selling units at The Lakeshore at prices ranging from the high $700 psf region to around $1,000 psf for apartments with views of Jurong Lake. Urban Redevelopment Authority's plans for the location released this month have also boosted interest in the condo. At Hillview Regency, prices range from about $700-plus psf to the high $800s for apartments facing Little Guilin. Units at La Casa were priced at over $500 psf.

  2. #2
    analyst101
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    Cool Re: Price cuts help Far East sell 3 projects: sources

    Quote Originally Posted by mr funny
    Published April 17, 2008

    Price cuts help Far East sell 3 projects: sources

    By KALPANA RASHIWALA


    PROPERTY heavyweight Far East Organization has achieved encouraging sales for three 99-year leasehold suburban projects after it trimmed their prices by about 3-5 per cent shortly after the Chinese New Year period, sources say.

    BT understands that the price cuts were aimed at drawing bargain hunters who were keen on the three completed developments - La Casa executive condo in Woodlands, and two private condos, The Lakeshore in Jurong and Hillview Regency in Bukit Batok.

    'Far East cut prices because it was pretty sure of the demand for its product. There were bargain hunters out there holding steady jobs and who've enjoyed a few years of good bonuses. Mortgage rates are also low today. But potential buyers had to be given a little incentive, because people expect softer prices as sentiment has weakened,' an industry observer said. 'It would have been pointless for Far East to have cut prices if there had been no demand as that would only have served to weaken confidence,' he added.

    Market watchers suggest that other developers could follow suit and help clear the current stalemate between buyers and sellers. After all, a modest price cut by developers in today's environment may not be greeted with panic, as in the 1998 property slump, as the Singapore economy is still growing, and the job market healthy.

    Far East is believed to have sold 50-plus units at The Lakeshore, around 20 units at Hillview Regency as well as the last 20-odd units at La Casa following the price cuts. Before the cuts, it had been selling units at The Lakeshore at prices ranging from the high $700 psf region to around $1,000 psf for apartments with views of Jurong Lake. Urban Redevelopment Authority's plans for the location released this month have also boosted interest in the condo. At Hillview Regency, prices range from about $700-plus psf to the high $800s for apartments facing Little Guilin. Units at La Casa were priced at over $500 psf.

    Does anyone know what are the discounted prices they sold these units at ?

    Far East has quite a few other projects. Some have also seen quite good sales (relative to the number of empty units left). Yet Far East has decided to lease them out rather than cut the selling prices. Anyone has any idea why ??

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    Default Re: Price cuts help Far East sell 3 projects: sources

    Quote Originally Posted by analyst101
    Does anyone know what are the discounted prices they sold these units at ?

    Far East has quite a few other projects. Some have also seen quite good sales (relative to the number of empty units left). Yet Far East has decided to lease them out rather than cut the selling prices. Anyone has any idea why ??
    I believe it's to free up working capital to develop new projects, as the banks are reluctant to lend too much due to credit crunch, partially due to the US subprime problem, and partially resulting from the ongoing Integrated Resort projects which took up too much financing.

    Far East probably felt it more worthwhile to earn 3% to 5% less in these existing projects and rollover the money to earn 10% or more from new developments, than to hang on to existing projects and not be able to start new ones due to lack of financing or overly high interest costs to secure financing.

    http://www.asiaone.com/print/News/Th...229-52111.html

    News @ AsiaOne
    The Business Times

    Property players sweat over lending squeeze

    Fri, Feb 29, 2008

    (SINGAPORE) The squeeze is on. Banks have tightened financing for property investment deals, which include big transactions like sales of office blocks and development sites. This, in turn, may keep some buyers from participating in the market, industry players have told BT.
    It's also taking longer to wrap up property sales deals these days as securing funding becomes more of an issue - and this could be a drag on investment sales.
    Bankers cite two main causes for the tightening. The turmoil in the global financial market has led to increased awareness of risks all round, and several mega transactions in the past 12 months here have left less liquidity available for others.

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    Default Re: Price cuts help Far East sell 3 projects: sources

    This is indeed good news.

  5. #5
    hahaaaahahhoooooo
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    Default Re: Price cuts help Far East sell 3 projects: sources

    far east ah far east... now people know how much u mark up liao lah... bloody con men

  6. #6
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    Default Re: Price cuts help Far East sell 3 projects: sources

    Quote Originally Posted by hahaaaahahhoooooo
    far east ah far east... now people know how much u mark up liao lah... bloody con men
    Still can't tell lah.

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