Biz Times: Condo sales at showflats tapering off

Condo sales at showflats tapering off

One developer blames Livia’s pricing for ‘spoiling’ other projects’ sales

 

WHILE City Developments managed to sell 96 units last week at its Livia condo at Pasir Ris, developers of most other projects suffered rapidly declining sales at their showflats.

 

At least one developer blamed Livia’s attractive pricing – $650 psf on average – for ‘spoiling’ sales of other projects, while others said a tapering off was to be expected given negative news flows from overseas on the state of the financial and stock markets.

 

Developers and property agents generally reported still strong turnouts at showflats last weekend, although take-up slowed.

 

Sim Lian sold 19 units last week at its Clover By The Park condo in Bishan, less than the 59-unit sales it achieved in the preceding week. To date, Sim Lian has sold 273 of the total 616 units in the project. ‘That’s almost 45 per cent of a large project in just three weeks; that’s quite an achievement given current market sentiment,’ Sim Lian Group executive director Diana Kuik said when approached by BT.

 

The 99-year leasehold project’s average price remains at $750 psf.

 

Sim Lian also sold a unit at The Amery, a freehold project in the Telok Kurau area, last week – again a less sparkling performance than the four units it sold a week earlier.

 

Next to Geylang River, NTUC Choice Homes and Ho Bee found buyers for another nine units at Dakota Residences last weekend. This brings total sales to 170 units in the 99-year project, which has an average price of about $980 psf.

 

Over in the Kovan MRT Station vicinity, the developer of Kovan Residences sold about 20 units last week, bringing total sales to over 100 units since the 99-year project was previewed at a private party on June 28. The average price is somewhere in the $870-900 psf range. Nearby, MCL Land sold another three units at its D-Pavilion, a freehold project priced at $900 psf on average last week. This was a slower sales rate than initial sales of 10 units the preceding weekend.

 

The stakes will go up for these two developers when Frasers Centrepoint previews this weekend its Woodsville 28 near Potong Pasir MRT Station – which is three MRT stops closer to town than Kovan MRT Station.

 

The 110-unit condo will have an average price of $880 psf. The 99-year leasehold development comprises two 17-storey blocks.

 

‘The two- and three-bedder units, with respective average sizes of 883 sq ft and 1,195 sq ft, are about 5 to 6 per cent smaller than conventional units as we’ve adjusted our sizes to fit the profile of the market we’re targeting – those just starting their families or young couples who want to stay near the city and even retirees.

 

‘Two-bedroom apartments start at $700,000 and three-bedders from just over $1 million,’ says Frasers Centrepoint Homes chief operating officer Cheang Kok Kheong.

 

CDL’s spokeswoman said Livia saw strong take-up of various unit types last week, especially two- and three-bedders. ‘The four-bedroom apartments were purchased either for owner occupation or rental potential in view of United World College’s East Campus coming up in the vicinity.

 

‘The project’s average price remains $650 psf, with prices for certain unit types and facing being upped by 1-3 per cent for the latest release of 120 units last weekend,’ she added.

 

The 96 units sold at Livia last week contrasted with sales of 160 units in the preceding week when CDL previewed the 99-year leasehold project, resulting in total sales of 256 units. So far, 320 of the condo’s total 724 units have been released.

 

A veteran property consultant said: ‘Crowds were generally still very good at showflats last weekend, though take-up has slowed. In any development, demand for 30-40 per cent of units comes from the surrounding population catchment. Usually that’s the case, good or bad times.

 

‘Once sales in a project launch hits a certain percentage from this catchment demand, developers have to attract people from other parts of Singapore. That’s a tougher job, with a lot more convincing to be done compared with selling to people who already know the area.’

 

Another problem is that buyers are unsure of the property market’s direction. ‘Even when there are attractively priced projects, potential buyers worry if property prices will go down further. They also ask themselves whether they really need to upgrade; they worry about the economy and their jobs. The bad news coming out from financial institutions in the US is a big concern,’ a property agent said.

 

On a more positive note, Sim Lian’s Ms Kuik said: ‘If you have a good product in a location where there’s a pool of buyers and if your pricing is reasonable, there will be take-up.’

 

Source: Business Times

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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

Healthy weekend home sales as attractive pricing draws buyers

Healthy weekend home sales as attractive pricing draws buyers 

Price levels set below those at nearby units launched recently or not yet completed

 

THE anaemic property market received a shot in the arm during the weekend, with robust sales and buyers keen to show that they will still deal if the price is right.

Suites 123 at Rangoon Road was sold out – a rarity these days – while Oxley Ventures offloaded 50 units of Parc Sophia in Adis Road. Sales were also healthy at Dakota Residences in Dakota Crescent.

 

Market watchers said the sales at these mid-market projects show that homebuyers can be drawn off the sidelines if prices are attractive.

 

‘Buyers will bite if you price your developments below recently launched or yet-to-be completed projects nearby and about 10 to 15 per cent above older properties in the vicinity,’ said Savills Singapore’s director of business development and marketing, Mr Ku Swee Yong.

 

Ho Bee Investment and NTUC Choice Homes have sold more than 80 units of the 99-year leasehold Dakota Residences since Saturday morning.

 

The developers released 122 units in the 348-unit project at an average price of $970 per sq ft (psf) – under the $1,100 or so they wanted a year ago.

 

Said an investor who went to the launch on Saturday: ‘This project is not exactly cheap. What it offers is value for money, especially in view of the makeover plans for Kallang.’

 

Ho Bee’s general manager of marketing and business development, Mr Chong Hock Chang, added: ‘Another reason the project did well in the current market was pent-up demand. It shows that there are people on the sidelines who are waiting to come out to buy at the right price.’

 

Suites 123, a 43-unit development marketed by Huttons Real Estate Group, was sold out yesterday.

 

The 37 residential units next to Little India and Farrer Park MRT station went for $940 psf to $1,277 psf, while the six shop units fetched between $375,000 to $595,000.

 

In the Mount Sophia area, buyers snapped up all 50 flats released at the 152-unit Parc Sophia over the weekend. Prices ranged from $1,500 psf to around $1,650 psf, or between $742,000 and about $1.2 million.

 

Developer Oxley Ventures, which is also behind Zenith in Zion Road and Tyrwhitt 139 in Tyrwhitt Road, offers an interest absorption scheme. It lets buyers postpone the bulk of their payments on new purchases.

 

Listed developer Sim Lian also started sales at the The Amery, a 74-unit development in Telok Kurau at the weekend. It sold 16 out of 39 launched units at an average of $860 psf, or between $1.16 million and almost $2 million.

 

More launches are expected in the next couple of weeks, including mass-market projects such as the 724-unit Livia in Pasir Ris and the 616-unit Clover by the Park in Bishan.

 

Meanwhile, the Strata Titles Board gave the go-ahead yesterday for the collective sale of the 342-unit Minton Rise. Kheng Leong, which bought the site early last year, plans to build 1,300 flats for launch next year.  

 

Source: Straits Times

Sales of Dakota Residences encouraging

Sales of Dakota Residences encouraging

 

By KALPANA RASHIWALA

 

A CLOSELY watched property market preview has yielded encouraging results amidst the current subdued market conditions.

 

Ho Bee Investment and NTUC Choice Homes have sold 80 units at Dakota Residences over the weekend. The developers have so far released 122 units in the 348-unit project at an average price of $970 per square foot – lower than the $1,000 to $1,100 psf Ho Bee had indicated in June 2007 when the developers emerged as the top bidders for the 99-year leasehold site.

 

No deferred payment is available for the 19-storey condominium project, which will front Geylang River.

 

Buyers are predominantly Singaporeans, many with private home addresses. ‘The majority of them live in the East Coast area, some even in landed homes. We have quite a number of professionals among the buyers,’ said Ho Bee executive director Ong Chong Hua.

 

 

‘It shows that if you price your project right, there are still buyers. There’s quite a bit of pent-up demand. Also buyers like the project’s proximity to Dakota MRT Station and the popular Old Airport Road Food Centre. The location is also very close to the popular East Coast area,’ he added.

 

The plans for the Sports Hub and and Kallang Riverside area have also helped to stir interest in the project, Mr Ong reckons.

 

The project comprises a mix of two, three and four-bedroom apartments and penthouses. Both penthouses in the stack of 122 units released so far have been sold – a 3,700 sq ft unit went for $3.37 million and the other, a 2,605 sq ft unit, fetched $2.62 million. A typical three-bedroom apartment of about 1,300 sq ft in the development costs about $1.3 million on average.

 

Ho Bee and NTUC Choice Homes paid $524 psf per plot ratio at a state tender last year for the Dakota Residences site, which attracted a whopping 15 bids.

 

Asked if the developers will consider raising Dakota Residences’ selling prices, Mr Ong said: ‘We’ll review it but any price adjustment will be moderate. Sentiment is still fragile. If you’re too aggressive in raising prices, you run the risk of stalling the sales momentum.’

 

Urban Redevelopment Authority data released last week showed developers sold 441 new private homes in May, up from 284 units in April.

 

Source: Business 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