Developers push out April launches

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Published April 19, 2011

Developers push out April launches

130 & 202 units sold at Hedges Park & Eight Courtyards since preview on Fri

By KALPANA RASHIWALA


AFTER achieving a 25 per cent pick-up in home sales last month, developers are continuing to push out new launches in April. Analysts say, however, that in some cases, sales have been somewhat slower than what the market is accustomed to as price resistance sets in.

Tripartite Developers sold 130 of 200 units that it has released at the 501-unit Hedges Park, a 99-year leasehold condo at Upper Changi Road. The average price is $850 psf.

In Yishun, Frasers Centrepoint and Far East Organization have sold 202 of the 280 apartments released at Eight Courtyards, a 99-year condo priced at $795 psf on average. Eight Courtyards comprises 654 apartments and two shop units. Previews for both projects began last Friday.

In addition to Eight Courtyards, Far East has sold another 87 units so far this month (including joint venture projects). Last month, it found buyers for a total 205 homes including JV developments such as Waterfront Isle at Bedok Reservoir, which was the group's top seller for March.

According to Urban Redevelopment Authority's data on March 2011 developer sales, Far East sold a unit at Boulevard Vue at Cuscaden Walk for $4,308 psf. Apartments in the 33-storey freehold department are about 4,500 sq ft each.

City Developments has sold 35 units at H2O Residences in Sengkang so far this month, after selling 255 units in March. This takes total sales to 290 units. The developer has so far released 350 of the 521 units in the project. The average price is $920-940 psf.

Wing Tai is expected to release soon Foresque Residences, a 99-year condo at Petir Road, next to City Developments' Tree House, which sold like hot cakes when it was released in April last year at an average price of about $800 psf. Wing Tai clinched its site in October last year for $345 per square foot per plot ratio (psf ppr).

Also on the radar of condo hunters would be Cheung Kong's 361-unit condo project along Upper Thomson Road, which will include 22 strata terrace houses. Foreigners do not require permission from Land Dealings (Approval) Unit to buy such landed homes, which are within a development with condominium status. Cheung Kong clinched the site at a state tender in late 2009 for $533 psf ppr.

While that would mark a fairly long gap of about 18 months or more from the time Cheung Kong clinched the site to when it launches the project on it, most other developers have been turning around sites much faster over the past year or so, launching projects in about five to eight months of buying 99-year leasehold residential sites at state tenders.

Analysts say that it makes sense to roll out launches as soon as possible given the strong pace of Government Land Sales as well as continual reminders from the authorities that there is plentiful supply. 'The message seems to be clearer to developers than to consumers,' quipped a property consultant.

Buyers snapped up 1,386 private homes (excluding executive condos, which are a hybrid of public and private housing) from developers last month. Including ECs, the figure was 1,543 units. Both numbers are up about 25 per cent from the preceding month.

Frasers Centrepoint said that Singaporeans and permanent residents picked up 92 per cent of the 202 units sold at Eight Courtyards. Foreigners - mostly from China and Indonesia - accounted for the other 8 per cent of buyers.

Frasers Centrepoint dished out other statistics on the buyer profile: 63 per cent were HDB upgraders; and half of the buyers live in Yishun, Sembawang or Woodlands.

All 30 one-bedroom units in the development have been snapped up. The project also includes two, three and four bedroom units as well as dual-key units.

At Hedges Park, Singaporeans picked up 90 per cent of the 130 units sold.

Prices start from $466,000 for a one-bedroom apartment of 484 sq ft and prices of four-bedroom units start from $1.06 million for a 1,345 sq ft unit.

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Apr 19, 2011

New launches drive brisk sales in new homes

Prices hold steady as developers play it safe, buyers stream back

By Esther Teo, Property Reporter

http://www.straitstimes.com/STI/STIM...ETLAUNCH19.jpg
Out of those who bought units at Eight Courtyards in Yishun, 63 per cent were HDB upgraders. Singaporeans made up 67 per cent. PHOTO: FRASERS CENTREPOINT HOMES

STRONG buying interest returned to the property market over the weekend and yesterday, with more than 430 homes snapped up on the back of a series of large property launches.

HDB upgraders came out in full force as suburban homes notched up brisk sales in areas such as Yishun and Upper Changi Road.

Market experts say project launches are a key factor in the strong sales. They expect sales this month to stay robust - likely to beat last month's 1,386 units - with more launches expected in the coming weeks.

Leading the pack was Frasers Centrepoint Homes and Far East Organization's 656-unit Eight Courtyards in Yishun where 202 units found buyers over its weekend preview sale.

The 99-year leasehold homes were priced at an average of $795 per sq ft (psf), which some experts say is noticeably lower than recent new mass market launch prices, and therefore attractive to buyers.

A one-bedroom unit costs $423,000 to $564,000, a two-bedder is between $637,000 and $751,000, while a three-bedder would set a buyer back by $703,000 to $1.03 million.

Nearby Canberra Residences, for example, launched for about $830 psf in January, while NV Residences in Pasir Ris was launched at about that average price in September last year.

However, experts say this is not an early sign of falling prices. Some point to slow sales of executive condo The Canopy, also in Yishun, as a factor that might have led the developers to adopt more cautious pricing in this instance.

Frasers said all its 30 one-bedroom apartments have been sold. Popular unit types also include two-, three- and four-bedroom apartments. HDB upgraders accounted for 63 per cent of buyers.

Singaporeans made up 67 per cent of buyers, permanent residents, 25 per cent while the rest were foreigners.

Hong Leong Holdings' 501-unit Hedges Park in Flora Drive in the Changi area moved 130 units at its preview at an average price of $850 psf.

The 99-year leasehold apartments sold included one- to four-bedroom units of 484 sq ft to 1,798 sq ft, and range in price from $466,000 for a one-bedder to $1.06 million for a four-bedder.

EL Development's 115-unit Skysuites 17 also sold nine units over the weekend, to bring its total sales to 99 units.

All 90 units at freehold project Centra Heights in Sims Avenue were also snapped up during its preview yesterday. Mr Melvin Ho, managing director of developer Fission Group, said the average price was about $1,250 psf - a level he said was 'realistic'.

'If not for the January measures, we would have priced the project about 5 to 10 per cent higher than we have. Our expectations have been tempered. We're not trying for a record or benchmark price,' he added.

A CDL spokesman said 35 units at H2O Residences have been sold this month, bringing the total sold to 290 of the 350 units launched so far.

Experts say strong buying interest means developers are likely to continue to hold prices steady. However, this month's sales are likely to surpass last month's as developers push out their launches to ride on the current wave of buying interest.

Mr Tan Kok Keong, OrangeTee's head of research and consultancy, added that with the economy doing well and with collective sales gaining momentum again, more buyers are entering the market.

He expects new private home sales this month to surpass the 1,500 units mark.

Dennis Wee Group director Chris Koh said buyers are streaming back again after a lull as the cooling measures were digested. But many of the buyers are owner-occupiers, he added.

'Developers watch one another and we are likely to see more projects pushed out as recently launched projects have done quite well. While volumes have increased, however, prices have held steady.'

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MOVING UP THE PROPERTY CHAIN

# Buyers bought 202 of the 657 units at Eight Courtyards in Yishun.

# At Centra Heights in Sims Avenue, all 90 units were snapped up yesterday.

# Hedges Park in the Changi area moved 130 units at an average price of $850 psf.

# This month's new home sales are likely to beat last month's 1,386 units.