Property development launches have been rare in recent months as most developers continue to hold off, given the volatile markets and poor market sentiment. However, one developer went ahead with the launch of its condominium in Woodlands mid November.

EL Development, optimistic that its lower-than-planned prices would draw buyers despite gloomy market conditions, launched its 99-year leasehold, 200-unit Rosewood Suites at S$580 psf on average. Prior to that, it held a sneak preview to test the market, followed by a soft launch when half the 60 units launched were sold.

Managing director Lim Yew Soon said: “We tested the market … and we were pleasantly surprised that the response was good, so we are going ahead with the launch.

“If we had waited till next year, there would be a lot of competition. It’s better to have a first-mover advantage.”

Rosewood Suites is a five-storey development with one- to four-bedroom apartments. It is located on Rosewood Drive, next to the 99-year, 478-unit Casablanca condominium and opposite Innova Junior College. It is also within walking distance to the popular suburban mall Causeway Point and Woodlands MRT station.

Prices for each apartment start from S$435,000 for a two-bedroom unit and up to S$1.1 million for a four-bedroom ground-floor unit. This works out to S$500 psf to S$660 psf.

“Our earlier price expectations were higher. We benchmarked current prices against the prices of older condos in the area,” said Lim, adding that those who bought at the soft launch enjoyed a two per cent discount from these price levels.

Knight Frank director of research and consultancy, Nicholas Mak noted that it is a fair value in today’s market. “There has not been a major development launch in the area for a long time so there will be some latent HDB upgrader demand,” said Mak.

Lim revealed that buyers were mostly dwellers of nearby flats and condominiums in Rosewood Drive such as Casablanca and Rosewood.

Two caveats lodged in September and October showed that two 1,184 sqf units were sold at S$541 psf and S$549 psf at Casablanca. This works out to S$640,000 and S$650,000 respectively.

Meanwhile, caveats lodged in the same months at the 437-unit Rosewood reveal that two 1,173 sqf units were sold for S$537 psf and S$550 psf, or at S$630,000 and S$645,000.

Rosewood Suites’ penthouses, priced between S$700,000 and S$1.4 million, will be released only when “times are better”.

EL Development, a unit of local builder Evan Lim & Co., bought the Rosewood Suites site from the Singapore Land Authority in November last year when prices were strong. It won a tender that drew eight bidders with a price of S$56 million or S$232 psf per plot ratio.

Lim said they had originally planned to launch the project in the third quarter of this year, and sell it for about S$600 psf to S$650 psf.