Top Global adjusts condo prices in response to cooling measures

Real estate group Top Global has made a 10 to 15 per cent downward adjustment to the prices of its two soon-to-be-launched condominiums in response to the recent slew of property cooling measures, and further changes may be made according to demand.

The freehold residential developments — R Maison and E Maison — are situated at Braddell Road and Somerville Walk, and are targeted at mid- to high-income earners. After the reductions, the 175 units at the two complexes, which are together called The Maisons, have an anticipated price range of between S$1,350 and S$1,450 per square foot.

“Given that The Maisons are among the first developments rolled out after the recent Additional Buyer’s Stamp Duty (ABSD), our pricing strategy will factor in the additional cost of home purchases,” said Mr Hano Maelo, Chief Executive Officer of Top Global.

The ABSD, which was one of the additional property cooling measures announced by the Government on Jan 11, applies to second homes for Singaporeans and first homes for permanent residents.

Ms Jennifer Chang, Chief Operating Officer and Executive Director of Top Global, added that the company will adapt its pricing and marketing strategy after seeing the response to R Maison, which is due to be launched by the end of the month. E Maison is scheduled to launch early next month.

Top Global is upbeat about prospects for the two developments despite the cooling measures.

“Our main selling points are value and location … as long as interest rates remain low and buyers continue to enjoy ample liquidity, we envisage a healthy demand,” Mr Maelo said.

The full impact of the cooling measures has yet to be seen. The most recent property sales data indicated that demand has stayed robust, but market watchers have cautioned that it might not be until this month or the next before a true picture emerges of how the measures have affected sales and prices.

Deputy Prime Minister Tharman Shanmugaratnam said in an interview with Bloomberg last week that there is still “some ways to go” before property prices are at an acceptable level.

Source : Today – 7 Mar 2013

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