Biz Times: Varying pace of sales at recently released projects

Varying pace of sales at recently released projects

 

DEVELOPERS selling private homes had a mixed bag of results at the weekend.

 

The 99-year-leasehold Livia in Pasir Ris, where previews started last Friday, has chalked up relatively strong sales of 160 units at an average of $650 per square foot (psf).

 

But sales were slower for most other recently released projects.

 

At Kovan Residences, another 20-plus units were sold at the weekend, taking total sales to more than 80 since the 99-year-leasehold project next to Kovan MRT Station was previewed at a private party on June 28.

 

The average price is between $870 and $900 psf.

 

Riding on the buying interest in Kovan Residences, MCL Land accelerated the preview of its 50-unit  D’Pavilion, a freehold condo on Upper Serangoon Road slightly further away from Kovan MRT. It sold 10 units on Saturday and Sunday at an average price of $900 psf.

 

In Bishan, Sim Lian found buyers for another 59 units last week at its Clover by the Park condo, taking total sales to 254 since it previewed the 616-unit project on June 25.

 

The average price for the 99-year-leasehold project is $750 psf. Sim Lian also sold four units at The Amery in Telok Kurau last week, taking the total to 31 of the 78 units in the freehold development. The average price is $860 psf.

 

NTUC Choice Homes and Ho Bee Investment sold another 10 units at the weekend at Dakota Residences. The sales tally is 161 for the 348-unit, 99-year condo that is currently selling at an average price of $980 psf.

 

Commenting on the varying pace of sales, a developer said it is not unusual for transactions to taper off after the first weekend or two weekends of a launch, after initial demand has expressed itself and choice units are taken up.

 

Another developer said: ‘I think potential buyers are nibbling. If they see a project they like and it’s priced attractively, they’ll go in. But buyers are very price-sensitive.’

 

Giving his take, a property consultant suggested: ‘I’ve got the feeling these developers may be slowly pushing up prices; so demand has been tapering off.

 

‘Once a developer has sold at least 30-40 per cent of units in a project, it may be slightly more comfortable with cash flow.

 

‘It may then be prepared to sell the rest of the project at a slower pace if it can achieve higher prices.’

 

A more worrying reason could simply be that demand has dropped.

 

‘People ask themselves: ‘With all the global economic uncertainty, do I really need to buy a new home now?’ said a market watcher.

 

City Developments Ltd said yesterday that most of the buyers at Livia are Singaporeans, while foreign buyers come from China, Indonesia, India, Malaysia and the Philippines.

 

Most people bought for owner occupation. The 160 units sold so far achieved prices of between $570 psf and $740 psf.

 

Prices start from $597,000 for a two-bedroom unit, $793,000 for a three-bedder and $991,000 for a four-bedder.

 

Hayden Properties starts to preview The Hamilton Scotts this week.

 

Prices are expected to start below $3,000 psf, though the average price is expected to be around $3,500 psf.

 

The freehold project comprises 54 apartments and two penthouses.

 

Source: Business Times

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Homebuyers, get ready for more property launches

Homebuyers, get ready for more property launches 

Developers will release projects to capitalise on recent healthy home sales

 

A STRING of new private residential projects is hitting the market as developers move quickly to capitalise on encouraging recent home sales.

In the Kovan area alone, two new projects – Kovan Residences and D’Pavilion – are holding previews this weekend.

 

The 99-year leasehold Kovan Residences, which has 521 apartments ranging in size from 883 sq ft to about 1,700 sq ft, is next to Kovan MRT station. Prices range from just below $800 per sq ft (psf) to more than $900 psf.

 

More than 50 units have already been sold, said Mr Tony Bin, the chief executive of Centurion Properties, known until recently as Duchess Development.

 

Centurion is largely owned by well-known UOB-Kay Hian stockbroker pair Han Seng Juan and David Loh. The rest is held by private investors and Lian Beng Group.

 

Not far from Kovan Residences is another new project, D’Pavilion, priced at an average of $895 psf for the preview. This freehold 50-unit project in Upper Serangoon Road is within walking distance of Kovan MRT station. It has two- to four-bedroom apartments and six penthouses.

 

Over in Pasir Ris, the preview for 724-unit Livia has already started. It is priced at $650 psf on average, or from $597,000 to $636,000 for the two-bedroom units and $793,000 to $835,000 for the three-bedroom units. Some have been sold, sources said.

 

These launches come in the wake of healthy sales at the 348-unit Dakota Residences in Dakota Road. The developers, Ho Bee and ChoiceHomes, have sold about 150 units of the 99-year leasehold property for between $940,000 and about $3.38 million since they went on sale a fortnight ago.

 

The Sim Lian Group has also sold more than 200 units of the 308 launched units of Clover by the Park since its preview late last month. Transacted prices ranged from $582 psf to $877 psf. It has just launched for sale the remaining units at the 616-unit 99-year leasehold project in Bishan.

 

United Engineers is also ready to launch its condo-like Housing Board project in Ang Mo Kio Street 52, but it has yet to commit to a date.

 

Called Park Central, the project will have more than 550 units and comes under the HDB’s Design, Build and Sell Scheme (DBSS).

 

A market watcher said the firm will have to launch it below the prices of the previous DBSS project in Boon Keng.

 

‘They will have to learn from the Boon Keng project, which still has leftover units. When it was launched, many people came but not all later bought,’ he said.

 

The 714-unit City View@Boon Keng, which was launched in January, had 474 five-room flats priced from $536,000 to $727,000, a range that some considered too high.

 

Launches will not be confined to mass- and mid-tier properties for long.

 

Next Tuesday, Hayden Properties will launch The Hamilton Scotts, its luxurious Scotts Road project with 54 apartments and two penthouses, which all come with private car porches.

 

Still, this new project and a few others such as the freehold 100-unit Newton Road project L’VIV, were already expected.

On the market

 

Kovan Residences

Units: 521 apartments

Prices: From below $800 psf to more than $900 psf

 

 

Livia

Units: 724

Prices: $650 psf on average

 

 

Clover by the Park

Units: 616 units, of which 308 were launched earlier

Prices: Transacted prices for launched units ranged from $582 psf to $877 psf

 

 

 

Source: Straits Times

Prices of some new properties coming down

Prices of some new properties coming down 

Move may signal end of months-long stand-off between buyers and sellers

By Fiona Chan, Property Reporter 

 

GOOD news for homebuyers: The prices of some new developments are finally starting to come down.

At least two new projects have been tagged with prices below what they were expected to fetch just months ago.

 

This may be because developers are faced with no sign of improvement in the cooling property market, consultants say. They may be choosing to move units by making their projects more affordable rather than continuing to wait out the gloomy sentiment.

 

One example is Dakota Residences in Dakota Crescent, a 99-year leasehold project by Ho Bee Investment and NTUC Choice Homes.

 

Sales of its 348 units will start next Saturday at an average of about $950 per sq ft (psf) – below the $1,000 psf to $1,100 psf that Ho Bee had previously targeted.

 

This means a 1,300 sq ft three-bedroom unit would cost about $1.24 million, down from as much as $1.43 million previously.

 

‘After the land cost and building cost, the break-even price is actually almost $900 psf,’ said a property agent, who asked not to be named.

 

The Straits Times understands that about 120 units will be released in the first phase, and prices may go up by at least 5 per cent for the remaining units, depending on demand.

 

For now, the two- and three-bedroom units that face away from Geylang River are said to cost $950 psf to $970 psf, while the bigger four-bedroom units facing the river will go for $1,000 psf.

 

City Developments’ (CDL) Shelford Suites in Shelford Road has also started previews for its 77 units at about $1,600 psf on average.

 

Market watchers said this was lower than expected, as two units were sold in March for $1,869 psf and $1,905 psf.

 

Shelford Suites’ launch had been delayed for months as CDL waited for sentiment to improve.

 

Property consultants say the act of lowering prices may be the beginning of the end of a months-long stand-off between homebuyers and home sellers that has led to a slump in transactions.

 

Would-be buyers have proved strongly resistant to current property prices, which have jumped 36 per cent in the last five quarters, while sellers have refused to reduce their prices until now.

 

But while lowering prices may jump-start the market, a one-off reduction may not be enough to sustain sales, said Mr Colin Tan, the head of research and consultancy at Chesterton International.

 

‘Developers will have to continue to reduce prices if they want to maintain sales, as many projects are still out of the reach of owner-occupiers,’ he said.

 

Meanwhile, developers are gearing up to launch more mid-tier projects for an increasingly price-sensitive market.

 

East Bay, a 40-unit condominium at Tay Lian Teck Road off Upper East Coast Road, will be on sale in the coming weeks. Prices average $1,100 psf, starting at about $600,000.

 

Also in the east, Ivory at Ceylon Road has sold about five of its 28 units. Prices start at $558,000 for a 640 sq ft two-bedroom apartment, averaging $800 psf.

 

At 353 Pasir Panjang Road, a 19-unit boutique project will be completed soon, though sales have just started. A handful of units have been sold so far, with one-bedroom apartments going for $550,000, and three-bedroom units priced at $1.4 million to $1.5 million.

 

ONE-TIME PRICE CUT NOT ENOUGH

 

‘Developers will have to continue to reduce prices if they want to maintain sales, as many projects are still out of the reach of owner-occupiers.’

 

MR COLIN TAN, head of research and consultancy at Chesterton International, who thinks one-off price reductions may not be enough to sustain sales

 

 

Shelford Suites

Sold in March for: $1,869 psf – $1,905 psf

Current price: $1,600 psf

 

Dakota Residences

Planned price: $1,000 psf – $1,100 psf

Current price: $950 psf

 

 

 

 

 

 

 

 

Source: Straits Times

Developers to unveil more modestly-priced condos

Developers to unveil more modestly-priced condos

Dakota slated for preview this month at under $1,000 psf average, lower than earlier indicated

 

(SINGAPORE) Developers are getting ready to release mass- to mid-market condos, encouraged by the response to modestly-priced developments recently.

 

City Developments Ltd (CDL) previewed Shelford Suites about a week ago at an average price believed to be around $1,550 psf, although CDL’s spokeswoman said the average price for the five-storey freehold project in the Shelford/Adam roads vicinity is in the $1,500 to $1,700 psf range.

 

The property giant is also aiming to preview by the end of this month or early July the first phase of Livia, a 724-unit condo at Pasir Ris Drive 1.

 

The 99-year leasehold condo, near Pasir Ris MRT Station, is being developed by a joint venture involving CDL, Hong Realty and Hong Leong Holdings.

 

‘The average price will be revealed closer to the preview,’ CDL’s spokeswoman said.

 

However, market expectation is that CDL will price the project attractively, at below $700 psf for the initial phase.

 

Those taken in by the charms of riverfront-living close to the city can look forward to Ho Bee’s and NTUC Choice Homes’ preview of The Dakota later this month.

 

The average price of the 99-year leasehold condo is expected to be ‘under $1,000 psf’, BT understands. This is lower than than the $1,000-1,100 psf average price expectation Ho Bee had indicated in June last year when the developers emerged as the top bidder for the plot at a state tender.

 

The 348-unit project is expected to be 20 storeys high and will front Geylang River. It will also be close to Dakota MRT Station, which opens on the Circle Line next year. The Dakota will comprise six blocks with a mix of two-, three- and four-bedroom apartments, and penthouses.

 

Over in Pasir Ris, CDL’s spokeswoman said that the company is in ‘in the final stage’ of preparing a phased soft launch of Livia. The condo is targeted at the mass market and will comprise several blocks of 15 to 16 storeys with two-, three- and four-bedroom apartments, and penthouses.

 

Elsewhere on the island, freehold projects with tiny studio units dubbed ‘shoebox apartments’ (ranging from under 400 sq ft to about 500 sq ft in size) in places like Sophia Road and Race Course Road, have been selling fairly quickly at around $1,100 to $1,400 psf in the past couple of months.

 

Over in the Botanic Gardens vicinity, UOL Group, Kheng Leong and Orix Corporation will officially launch today Nassim Park Residences condo.

 

Nearly 50 units have been sold at an average $3,000-3,200 psf since the preview began the week of Vesak Day, although this is expected to go up slightly from today.

 

 

Testing the market: CDL previewed Shelford Suites about a week ago at $1,500-$1,700 psf. The group is also aiming to preview the first phase of Livia, a condo in Pasir Ris, by month’s end or early July.

 

Source: Business Times