Some home buyers are waiting by the sidelines in anticipation of discounts in upcoming launches.
Developers offer some incentives though deep cuts not expected
While developers have been offering and may continue to offer some units at lower prices in upcoming property launches, the price-cuts are not expected to be deep. The high prices which developers have paid for land sites in the past couple of years may mean that they are unable to or unwilling to lower their prices too drastically.
Daintree Residences, one of the first launches after the new property cooling measures were implemented last month, offered a 5% discount on the 80 units offered up for sale at the launch. 50 of the units were sold at the launch over the weekend, a positive response considering the slower sales prior to the weekend.
Parksuites at Holland Grove Road also offered an additional 5% discount “for a limited time only” while some others are engaging the services of sale agencies and offering agents higher commission rates. Some are also actively helping to market and advertise the services of these agencies and agents. The Tre Ver in Potong Pasir for example employed 6 agencies to help with their launch last weekend.
Daintree Residences sold 50 out of 80 units at their launch
The 327-unit Daintree Residences released only 80 units at their launch last weekend. Sales were fairly brisk as they have already sold 50 units or more than 60%. The project in Toh Tuck Road sold at a median selling price of $1,710 psf, slightly lower than the projected $1, 800 psf.
Some developers are however holding back on their launches to observe consumer response to other launches in the vicinity. Park Colonial in Woodleigh, for example, is holding back on their next phase of sales. Sales at the Tre Ver and Woodleigh Residences nearby may provide a gauge of how the market performs following last month’s cooling measures.
While some industry growth is still expected of the year, momentum has no doubt slowed. The market exuberance from the first half of the year has died down rather a lot. Take up rates at previously-launched properties such as Affinity @ Serangoon and The Garden Residences may also slow down.