Buyers waiting for prices to drop, but developers hold steady
IT IS fewer visitors and even fewer sales for property showflats across the island as buyers play a waiting game in the hope of seeing prices fall.
But developers’ asking prices at most showflats are holding steady, with one – NV Residences in Pasir Ris – even increasing prices over the weekend.
Two weeks after measures to cool the market were introduced, NV Residences bucked the trend of muted sales with a strong showing of 90 units sold at the weekend.
This brings total sales to 250 out of 300 units released. 80% of buyers were Singaporeans; the rest were permanent residents and foreigners, a developer spokesman said.
Prices were raised by between 1-2% at the weekend from its average selling price of $830 per sq feet (psf) when the condominium first previewed. The 642-unit condo is the first large residential project to be released after the Government introduced new property rules on Aug 30.
When The Straits Times visited NV Residences on Saturday afternoon, more than 100 walk-ins crowded its showflat.
Madam Linda Tay, 55, who bought an apartment there, said she was unaffected as the mortgage on the HDB flat she and her husband have been living in for the past 22 years was paid up.
‘This is for long-term investment, we can rent it out or pass it on to our children, and we think it is better than just leaving our money in the bank,’ she said.
PropNex chief executive Mohamed Ismail said the project’s good location and reasonable pricing were key to its strong sales. Other sites sold to developers this year are expected to be launched for up to $1,000 psf, given their break-even prices of about $800 psf, he said.
Another analyst said that NV Residences, as the newest launch on the market, would attract the most buyer interest.
At other showflats across the island, buyer traffic was down, with only a handful of visitors at any one time. It was a quiet Saturday afternoon for the showflats at Waterfront Gold at Bedok Reservoir Road, Centro Residences near Ang Mo Kio MRT and Flamingo Valley in Siglap.
Some agents said the number of walk-ins at showflats has dropped by up to 10% since the new measures were introduced.
Far East Organization’s Centro Residences did not record any sales at the weekend. Phase Two of 319-unit leasehold project The Greenwich at Seletar Hills saw nine homes sold, bringing total sales to 225 out of 265 units launched, at an average selling price of $1,074 psf.
Property consultant Brandon Lee said it was unlikely developers would reduce prices immediately as the strong run up in property prices and sales over the past year have given them a strong holding power.
Mr Ong Kah Seng from Cushman & Wakefield Asia-Pacific said that for prices to fall, take-up must first moderate, reflecting the onset of a contraction in buying interest.
‘Developers and home owners are reluctant to lower prices and will consider only when all circumstances dictate a necessity,’ he said.
But PropNex’s Mr Ismail said that while it was still too early to expect any price adjustment, the mass market segment might see a 5 -10% drop in prices should the take-up rate be lukewarm and this may unfold in the next two months.
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