A total of 23 units ranging from one-bedders to a 3,000 sq ft penthouse were sold for $48 million and the buyer was linked to Evia Capital. A few months earlier, news about developers hoping to bulk sell units to funds in order to meet their QC deadline and to recoup their losses were put out there. As the quantity of unsold stock in the market increases, developers have been coming up with new ways to entice buyers, individual or group.
For Starlight Suites, the sale price for these final 23 units worked out to be about $1,670 psf. At its launch, the average selling price was at $2,000 psf. The deal was done via a sales of shares in the development company, Meadows Property (Singapore) who are then not bound by the QC rules nor have to succumb to the extension charges. As Starlight Suites is situated near a Martin Place land plot which will be released for tender under the Government Land Sales (GLS) programme next month, this purchase could be a blessing as Evia Capital will be able to use their purchase as a benchmark for units in the adjacent development.
A similar deal previously brokered at $75 million last year was 111 Emerald Hill. As the QC deadline for more projects draw near, how will developers react? Could there be further price drops?