PROPERTY heavyweight Far East Organization has achieved encouraging sales for three 99-year leasehold suburban projects after it trimmed their prices by about 3-5 per cent shortly after the Chinese New Year period, sources say.
BT understands that the price cuts were aimed at drawing bargain hunters who were keen on the three completed developments - La Casa executive condo in Woodlands, and two private condos, The Lakeshore in Jurong and Hillview Regency in Bukit Batok.'Far East cut prices because it was pretty sure of the demand for its product. There were bargain hunters out there holding steady jobs and who've enjoyed a few years of good bonuses. Mortgage rates are also low today. But potential buyers had to be given a little incentive, because people expect softer prices as sentiment has weakened,' an industry observer said. 'It would have been pointless for Far East to have cut prices if there had been no demand as that would only have served to weaken confidence,' he added.
Market watchers suggest that other developers could follow suit and help clear the current stalemate between buyers and sellers. After all, a modest price cut by developers in today's environment may not be greeted with panic, as in the 1998 property slump, as the Singapore economy is still growing, and the job market healthy.
Far East is believed to have sold 50-plus units at The Lakeshore, around 20 units at Hillview Regency as well as the last 20-odd units at La Casa following the price cuts. Before the cuts, it had been selling units at The Lakeshore at prices ranging from the high $700 psf region to around $1,000 psf for apartments with views of Jurong Lake. Urban Redevelopment Authority's plans for the location released this month have also boosted interest in the condo. At Hillview Regency, prices range from about $700-plus psf to the high $800s for apartments facing Little Guilin. Units at La Casa were priced at over $500 psf.
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