http://www.theedgeproperty.com.sg/co...ts-city-fringe

Competition heats up on the city fringe
By Feily Sofian / The Edge Property | June 3, 2016 10:16 AM MYT
Tags: city fringetwo-tier market

Sales of units at Gem Residences trickled to just 15 in the launch weekend after a strong start that saw 300 units snapped up at its VIP preview at an average price of $1,426 psf. Despite the slowdown in sales at Gem Residences, city-fringe projects priced below $1,500 psf generally continue to be well received. On the other hand, there is a potential oversupply in Bukit Merah and Queenstown, which could create a two-tier market in the city fringe.

The pullback in take-up rate at Gem Residences is due to competition from other well-located projects. Just one week earlier, Cheung Kong Property Holdings launched Stars of Kovan. The project is located within a short walk from the Kovan MRT station. At least 66 units have been sold at an average price of $1,403 psf.

Previously launched projects are also vying for buyers’ attention. Despite the stiff competition, demand has been steady for city-fringe projects that are attractively priced.

In the first three weeks of May, MCC Land moved 34 units at The Poiz Residences at an average price of $1,389 psf. The project is located right next to the Potong Pasir MRT station. The take-up rate was consistent across unit types. The latest sales tally was based on URA caveat records as at May 30, which includes transactions up to the third week of May.

http://www.theedgeproperty.com.sg/co...ts-city-fringe