Results 1 to 7 of 7

Thread: Lots to pick from for home buyers

  1. #1
    Join Date
    Oct 2011
    Posts
    10,829

    Default Lots to pick from for home buyers

    http://www.straitstimes.com/Invest/S...ry_776288.html

    Lots to pick from for home buyers

    Developers offer sweeteners in face of flood of new projects coming to market

    Published on Mar 11, 2012

    By Esther Teo, Property Reporter

    Upcoming suburban projects
    Upcoming EC launches
    Upcoming city fringe projects

    Home buyers will be so spoilt for choice this year that most won't know where to turn - or which developer's sweetener to take up.

    The launches and freebies are already coming thick and fast with loads of new projects lined up. The news is less certain for pricing but few experts expect huge bargains on the horizon.

    While some say prices might stay firm because developers have strong holding power, others predict price cuts ranging mostly from 3 to 10 per cent - depending on the segment - although there does not appear to be any industry-wide price reduction yet, apart from the various sweeteners.

    Still, the Urban Redevelopment Authority's price index inched up just 0.2 per cent in the three months to Dec 31, suggesting that a turning point might be around the corner.

    But on the supply side, it's all guns blazing. At least 10 developments were launched in the first two months of this year, including Bartley Residences, Watertown and Guillemard Edge, as firms rush to meet buyer demand, stoked by rock-bottom interest rates.

    Property consultancy CBRE said that up to 48 new private projects - more than 5,000 landed and non- landed units - may be launched this year. They range from high- end homes in River Valley, Nassim Hill and Newton to mass-market projects in Yishun, Bedok, Choa Chu Kang and Pasir Ris. But they do not include recently sold sites that could be launched by year's end, so the total number of new projects could be even higher.

    Apart from these private residential projects, at least two more executive condominium (EC) projects with another 1,100 units are expected to be launched.

    So competitive is the landscape that developers have been pulling out the stops to lure buyers, with incentives like furniture vouchers and the absorption of stamp duty thrown in.

    The bumper crop of new launches expected this year stems from the Government's ramped-up land sales programme (GLS) that began in the second half of 2010 and attracted keen developer interest. It also comes from the roughly 50 collective sale deals sealed last year.

    Like last year, the bulk of the new launches is expected to be in suburban areas, catering to first- time buyers and upgraders who have been powering the market over the past few years.

    The pipeline supply of sites and projects will provide a variety in terms of location and pricing so buyers will have numerous options to consider, say experts.

    Mr Ku Swee Yong, chief executive of International Property Advisor (IPA), noted that with average unit sizes shrinking, the number of units eventually launched on GLS sites might exceed official estimates by 20 per cent or more.

    Land parcels that could yield an estimated 7,000 units were placed on the confirmed list of the GLS for the first half of this year.

    Mr Lee Liat Yeang, a partner in Rodyk & Davidson's Real Estate Practice Group, agreed, saying that developers are aware of the importance of keeping homes small and hence, overall prices affordable.

    'Some two-bedroom units are smaller than 500 sq ft. These small two-bedders should appeal to investors of projects within the city or city fringe, who tend to rent out these units.'

    Private home prices

    Experts say that price trends are likely to be project-specific, with better located projects with strong selling points achieving higher prices.

    But while developers will be cautious on pricing, they will push the market for what it will bear if there is an opportunity or when sentiment is good, said Mr Colin Tan, research head at Chesterton Suntec International.

    Mr Tan Kok Keong, OrangeTee's head of research and consultancy, expects mass-market projects in less well-located areas to be priced at $800 to $900 per sq ft (psf), while better located projects like Sky Habitat in Bishan could be in the $1,400 to $1,500 psf range.

    IPA's Mr Ku, however, estimates that mass-market home prices will average $1,100 psf in upcoming launches.

    Homes in the city centre like Leedon Residences might go for $2,000 psf and up to $4,000 psf for Ardmore 3, he said.

    In the high-end market where sales have been lacklustre, Chesterton's Mr Tan said that developers will likely try to rent them out or delay completion as long as they can while OrangeTee's Mr Tan said prices might fall by 'a single digit'.

    'Developers need to sell enough units to finance their construction costs and do not need to sell out their projects within a short period from first launch,' added Rodyk's Mr Lee.

    'In short, developers who have done very well in the past few years have strong holding power and should not panic-sell so long as they can clear a reasonable percentage of units in each project.'

    Completed projects

    Completed projects are an alternative for buyers in urgent need of a new home that's not from the resale market.

    The URA lists 66 projects that are completed but with unsold units as of the fourth quarter of last year. Most of these projects are in the high-end segment where sales have been slow. These include Reflections at Keppel Bay with 290 unsold, Hilltops at Cairnhill Circle with 208 and Newton Imperial with all its 36 units unsold.

    Executive condos

    ECs are an interesting segment to watch as the Government recently lifted the quota for second-time purchasers. This means that they will now be able to buy 30 per cent of units in an EC project within the first month of sale, up from 5 per cent before.

    The Government has also said it is ready to supply sites for up to 5,000 EC units this year if demand remains strong.

    Credo Real Estate executive director Ong Teck Hui said that prices for upcoming EC launches in areas such as Pasir Ris and Yishun can be expected to range from $680 to $750 psf. While private property prices remain high, there will be buyers who opt for ECs instead as these are typically cheaper by 20 per cent or more.

    The pool of eligible EC buyers has also increased with the upward revision of the monthly household income ceiling last August from $10,000 to $12,000.

    'The main advantage of buying a new EC is the price discount over private homes when they are bought, and the value boost when they can be sold on the open market and fully privatised,' said Mr Credo's Mr Ong.

    'Depending on location, the capital appreciation can be significant. For example, the average launch price of Bishan Loft was $420 psf in 2001 but there are resale units commanding above $1,000 psf recently.'

    ECs are subject to a minimum occupation period of five years. They can then be sold only to Singaporeans and permanent residents. They become private property after 10 years and can then be sold to foreigners.

    Deal sweeteners

    Developers are also increasingly pushing out new and creative promotions, discounts or freebies to beat the stiff competition.

    There is very often an early bird or VIP preview price which can be up to 20 per cent lower than the list price. This discount gradually gets scaled back later into the launch, encouraging buyers to commit early. Some developers have also started absorbing part of the stamp duty to cushion the impact of the latest cooling measures announced on Dec 8 last year.

    Far East Organization offers furniture vouchers, with the amount based on apartment size and usually given when a project attains its Temporary Occupancy Permit. It has also given additional discounts of 1 per cent, labelled Valentine's Day or Leap Year promotions, for some projects.

    Experts say that some of these incentives are an attempt to boost sales without dropping the price as doing so might damage the reputation of the developer and anger earlier buyers.

    'There is the good feeling when you have received a deep discount whether real or perceived,' said Chesterton's Mr Tan.

    Snazzy showflats decked out in posh furnishings can also help sway buyers, and developers are now spending more time and big bucks creating concepts and designs that appeal to different buyer segments.

    The 15,000 sq ft Thomson Grand showflat along Upper Thomson Road, for example, cost $8 million to build. Its furnishings include Swarovski crystal chandeliers, Louis Vuitton luggage and Hermes plates - all to project its luxury positioning.

    [email protected]

  2. #2
    Join Date
    Jun 2011
    Posts
    6,134

    Default

    any developer giving free ipad...

  3. #3
    Join Date
    Jul 2011
    Location
    Earth
    Posts
    4,063

    Default

    Quote Originally Posted by radha08
    any developer giving free ipad...
    The last i heard was Palm Isle giving ipad3.
    But i think now no more cos can't find it on their website anymore.

  4. #4
    Join Date
    Apr 2010
    Posts
    15,307

    Default

    Quote Originally Posted by buttercarp
    The last i heard was Palm Isle giving ipad3.
    But i think now no more cos can't find it on their website anymore.
    given by agts themselves

    this happen smtimes when there r more den one marketing agt for a project

  5. #5
    Join Date
    Jan 2012
    Posts
    3,294

    Default

    Isn't it common for agents to give rebates? Nothing new ma.. Ipad3 only worth wat? $1k?

    I got few k cash rebates from my agent. They're not supposed to give but usually if u bargain a little they will. Otherwise move on to the next agent

  6. #6
    Join Date
    Mar 2012
    Posts
    24

    Default

    Quote Originally Posted by price
    Isn't it common for agents to give rebates? Nothing new ma.. Ipad3 only worth wat? $1k?

    I got few k cash rebates from my agent. They're not supposed to give but usually if u bargain a little they will. Otherwise move on to the next agent
    How i wish if my agent is not my Wife's relative.. tmd!

  7. #7
    Join Date
    Jan 2012
    Posts
    3,294

    Default

    Quote Originally Posted by jeffchan23
    How i wish if my agent is not my Wife's relative.. tmd!
    Thats why sometimes buying from friends should bargain too! Even from bankers, u can ask for referral fees. usually worth a few hundred bucks. i got $300 tangs voucher and $400 cash for my loan

Similar Threads

  1. September new home sales tipped to pick up
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 13-10-14, 18:53
  2. New home sales pick up after Dec's 5-year low
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 22-02-14, 03:36
  3. Mature estates are 'buyers' choice pick'
    By mr funny in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 25-04-11, 16:02
  4. Private home rents pick up
    By mr funny in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 25-01-10, 22:50
  5. Foreign buyers pick up prime London homes
    By mr funny in forum HDB, EC, commercial and industrial property discussion
    Replies: 0
    -: 04-02-09, 14:37

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •