Showflats still buzzing despite loan restrictions

Despite the new housing loan rules from the Monetary Authority of Singapore (MAS), home buyers are still flocking to condominium showflats, with strong turn-out seen last weekend at Skies Miltonia in Yishun and Riversails at Upper Serangoon, according to The Business Times.

67 percent of units at the 420-unit Skies Miltonia have been taken up. In addition, the developer is offering an 18 percent discount and is giving owners of some units the option to upgrade to marble flooring.

Meanwhile, property agents said that over 300 units have been sold at the 920-unit Riversails, with at least 20 units bought over the weekend. Average prices for large units (three bedroom +) are just above S$800 psf; while prices of one-bedders average S$1,000 psf.

Lee Sze Teck, Senior Manager (Training, Research and Consultancy) at Dennis Wee Group said the figures indicate that sales are still moving.

“I believe people are there to see if there is any reaction from the developers – if they will offer more incentives, or if they will hold prices stable.”

For instance, buyers of units at eCO in Bedok South received an additional two percent furniture voucher, aside from other discounts offered.

Donald Han, Special Adviser at HSR Property Group, was not surprised at the strong turnout, adding that “the feverish pace of launches is driven by sentiment, which is still positive”. In fact, buying activity now seems less speculative with most home buyers purchasing for occupation or to upgrade.

“The bottom line is that interest rates are still low. (Apartments are) slightly less affordable now, but where else can you put your money?” he said.

Source : PropertyGuru – 8 Oct 2012

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