Price cuts draw buyers to 3 condo relaunches

May 19, 2009
Price cuts draw buyers to 3 condo relaunches
By Joyce Teo

Three prime condominium projects that struggled to generate interest last year saw a surge of buyer activity over the weekend after developers cut their prices.

The freehold 19-storey Parc Centennial in Kampong Java Road - where all 51 units are served by private lifts - sold 32 units at $1,115 per square foot (psf) to $1,233 psf, or from $1.27 million to $1.93 million. This price level is about 20 per cent lower than last year's $1,450 psf, and the interest absorption scheme is included.

Developer EL Development sold only six units in April and May last year when the project was originally released for sale. And at a private preview in March this year, it sold a 2,486 sq ft penthouse unit for $1,005 psf.

It held a preview this past weekend and has now sold all the two-bedroom units, which start from 1,098 sq ft. The three-bedders increase in size to 1,572 sq ft.

Managing director Lim Yew Soon said he had raised the prices of the remaining 12 three-bedroom units at Parc Centennial by 2 per cent.

Over at the 302-unit Martin Place Residences in River Valley, a soft launch over the weekend saw sales of 80 units at $1,450 psf on average, out of a total of 100 units launched.

Developer Frasers Centrepoint Homes said the 'attractive pricing' drew buyers. It released units priced from $1,260 psf to $1,700 psf, compared with the initial 28 units sold at $1,700 psf to $2,000 psf last year.

Singaporeans made up 62 per cent of the buyers at Martin Place Residences, with the rest being permanent residents and foreigners.

Earlier, CapitaLand had reported strong weekend sales at its 173-unit The Wharf Residence. About 95 per cent of the buyers chose not to take up the stamp duty waiver and interest absorption, preferring a straight 8 per cent price cut, it said yesterday.

Prices started at just below $1,000 psf for units with private enclosed space and many of the weekend deals were done at less than $1,300 psf, industry sources said.

Attractive price cuts, coupled with the recent stock market rally and a fear of losing out, are some of the key factors spurring buyer interest, experts said.

Compared with the situation late last year, buyers are more confident and developers seem to be taking advantage of improving sentiment to relaunch projects at attractive prices, said PropNex chief executive Mohamed Ismail.

.............Coincidentally, I went over the weekend to enrol my son into Meyer Road Pat School House. It costs about above 700+ for a half day course. The other school I saw was Modern Montesorri which cost about 600+. PS has a ratio of 1:7 while MM a ratio of 1:12. Furthermore, PS has a classroom of muscial instruments.

This is my thoughts... I have colleague who place their kids into church school which costs around 200+, but this does not include school holidays. So effectively they have to find ways to take care of them, also they enrol them for Chinese+Music+Art class which will cost another additional 200-300+. In PS, you have everything in 1 roof, which will save time/effort too.

PS anyway has very good reviews and I think it is time for my little one to learn some independance and some skill sets which we as parents/grandparents may be hard to instill.

....Anyhow, after registering my son, we visited a new classy condominuium "View at Meyer". Its has a very classy architectural building with private lifts. It is sort of a boutique condo. But wow, the price was also classy. It range from 1250 psf (3th floor) to 1450-1500 (9th floor) and 1700 psf at 20+ floor. A 3-bdrm is 1600+ sqf and 4-bdrm 1790 sqf. Thus the price is ard 2.2- 2.9 million. Well according to the property agent there, this is considered a boutique condo, and this is the price to pay. Nearby condos like Esta/Seaview/One amber is ard 900 + psf, but there are easily few hundred units there. I suspect there might be traffic jam just trying to get back home.

I am thinking, at the end of the day, convenience is still my top prority. Getting food is a breeze to me, at my current place, I can get good food within 3 mins walk.

It is also next to a upcoming central MRT. If I were to stay in those Condo, I will have missed out on all these convenience. When my kids grow up, I need not fetch them up/down frequently. My Uncle who lives in Bukit Timah Coronation road, although is considered prime land, he has to be a full time chauffeur as it is so inaccessible.

At the VaM, I also saw Zhou Chu Ming. He seems to have bought a 1-bdroom trying to rent out at 3.5K. Well good luck.

Property seems to be picking up, due to pent up demand and sentiment. However the avalanche of TOP property next year and the wave of expatriate going back home only means that supply is still in abundant. I am not optimistic of property prices in the next 1-2 years, which had not corrected much.