Healthy Weekend Home Sales As Attractive Pricing Draws Buyers

Source : The Straits Times, June 24, 2008

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.

BUSY TIME: Huge crowds visited the show-flat for Dakota Residences during the weekend, with more than 80 units of the 99-year leasehold project in Kallang sold since Saturday morning. -- PHOTO: HO BEE

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.