http://www.straitstimes.com/archive/...arket-20150310

Condo developers dangle discounts in down market

Lower prices help to draw buyers to two weekend property launches

Published on Mar 10, 2015 1:42 AM

By Cheryl Ong


LOWER prices have helped to entice buyers in a down market, going by sales at two recent property launches.

Developers have adjusted their expectations in a bid to gain some traction amid falling sales, in the wake of cooling measures and stringent financing rules.

Take Kingsford Waterbay, a 1,165-unit development in Upper Serangoon that sold 140 homes over the weekend.

The average sales price of $1,050 to $1,180 per sq ft (psf) was below an initial expected selling price of $1,200 psf, the project's developer Kingsford Development told The Straits Times recently.

The weekend sales included that of a 1,949 sq ft semi-detached unit, which was sold for $2.14 million - or $1,097 psf - and a 1,625 sq ft strata terrace unit, which fetched $1.76 million, or $1,080 psf.

The firm said that most of the units sold were two-bedders, spanning 614 to 721 sq ft. Singaporean buyers were in the majority, comprising mostly young couples and upgraders, the firm added.

Kingsford Waterbay includes apartments, six strata terrace houses, two strata semi-detached houses, a childcare centre and six shops.

Meanwhile, GuocoLand's 1,024-unit Sims Urban Oasis in Sims Drive sold 29 apartments over the weekend, bringing the sales tally to "more than 170 units" since sales began on Feb 14.

Property agents said that discounts of up to 19 per cent were offered over the Chinese New Year holiday. But that has now shrunk to 18 per cent.

GuocoLand said units were snapped up for between $1,295 and $1,595 psf.

Mr Cheng Hsing Yao, managing director of GuocoLand (Singapore), said the firm was "still closing sales on a daily basis, which is a very strong affirmation of the project".

Almost 90 per cent of buyers were locals, he said, and most of the units sold were one- and two-bedders.

The project has 275 one-bedroom units ranging from 480 to 500 sq ft, 348 two-bedders from 710 to 790 sq ft, 302 three-bedders from 820 to 1,050 sq ft, 84 four-bedders from 1,000 to 1,450 sq ft and 15 five-bedroom units that are 1,730 sq ft in size.

Other upcoming launches this quarter include NorthPark Residences by Frasers Centrepoint and Botanique at Bartley by UOL Group.

PropNex Realty chief executive officer Mohd Ismail noted that both projects are likely to attract buying interest, but NorthPark Residences, an integrated development in Yishun, might attract more investment interest given its direct links to the MRT station and shopping mall.

The Bartley area has also seen the development of several new condominiums in recent years, such as Bartley Ridge and Bartley Residences. Demand, said Mr Ismail, would depend on pricing as well, but "supply might have reached a saturation point in that area".

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