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24-04-2012, 08:02 AM
The Straits Times
Apr 24, 2012
Builders make bid to move unsold units
Marketing, promotions being ramped up for some earlier projects
By Amanda Tan
SOME developers are ramping up their marketing and throwing in discounts in a bid to move unsold units.
Builders often have a stock of unsold flats in projects, even years after launch, so such campaigns are not uncommon.
Bukit Sembawang marketed 19 units from its Paterson Suites, in Paterson Road, over the weekend with offers that effectively meant lower prices for buyers.
These have been snapped up, leaving only two four-bedders, on the second and fourth floors of the luxury condominium, sources told The Straits Times. The freehold project was completed in 2010.
One incentive could be the guaranteed 5 per cent rental yield for four years advertised in The Straits Times last Friday by the developer.
This works out to $300,000 a year - or $25,000 each month - for four years, on a $6 million apartment. So if the rent falls below $25,000 a month, the developer will top up the difference.
Owner-occupiers were given an outright 10 per cent discount off the purchase price.
The two remaining units are around 2,200 sq ft and were quoted as costing just over $2,800 per sq ft (psf) on average, giving a price of more than $6 million each.
The 102-unit development was sold for a median psf price of $2,720 in June 2007, shortly after its launch.
The sources said a mix of locals and foreigners have bought units there.
Sources also said that in Simei, CEL Development, the property arm of Chip Eng Seng, is looking to release units at its project My Manhattan.
The 301-unit condo was launched early last year, but experts said that the hefty price tag of about $1,219 psf could have deterred buyers earlier.
It is understood that CEL Development is still deciding on how many units to release this time at the project, expected to be completed in 2014. Urban Redevelopment Authority data shows that only 134 units, or about 45 per cent of My Manhattan, have been sold so far.
Mr Nicholas Mak, head of research at SLP International Property Consultancy, said it is common for developers to have unsold units a year or more after launch.
He said that developers relaunch or revive promotions when the market gets hotter and they want a slice of the pie.
'They may feel that there are now more buyers in the market, or are encouraged by the high number of sales in the previous months,' he said, adding that prices may be revised to attract buyers.
Property consultants also said that Paterson Suites' perks, while not new, have not been seen in the market for some years. Mr Colin Tan, research head at Chesterton Suntec International, said: 'This is because in the central areas, developers see no reason for lowering prices... Now they feel confident enough to give such discounts and that it would attract more sales.'
tamanda@sph.com.sg
Apr 24, 2012
Builders make bid to move unsold units
Marketing, promotions being ramped up for some earlier projects
By Amanda Tan
SOME developers are ramping up their marketing and throwing in discounts in a bid to move unsold units.
Builders often have a stock of unsold flats in projects, even years after launch, so such campaigns are not uncommon.
Bukit Sembawang marketed 19 units from its Paterson Suites, in Paterson Road, over the weekend with offers that effectively meant lower prices for buyers.
These have been snapped up, leaving only two four-bedders, on the second and fourth floors of the luxury condominium, sources told The Straits Times. The freehold project was completed in 2010.
One incentive could be the guaranteed 5 per cent rental yield for four years advertised in The Straits Times last Friday by the developer.
This works out to $300,000 a year - or $25,000 each month - for four years, on a $6 million apartment. So if the rent falls below $25,000 a month, the developer will top up the difference.
Owner-occupiers were given an outright 10 per cent discount off the purchase price.
The two remaining units are around 2,200 sq ft and were quoted as costing just over $2,800 per sq ft (psf) on average, giving a price of more than $6 million each.
The 102-unit development was sold for a median psf price of $2,720 in June 2007, shortly after its launch.
The sources said a mix of locals and foreigners have bought units there.
Sources also said that in Simei, CEL Development, the property arm of Chip Eng Seng, is looking to release units at its project My Manhattan.
The 301-unit condo was launched early last year, but experts said that the hefty price tag of about $1,219 psf could have deterred buyers earlier.
It is understood that CEL Development is still deciding on how many units to release this time at the project, expected to be completed in 2014. Urban Redevelopment Authority data shows that only 134 units, or about 45 per cent of My Manhattan, have been sold so far.
Mr Nicholas Mak, head of research at SLP International Property Consultancy, said it is common for developers to have unsold units a year or more after launch.
He said that developers relaunch or revive promotions when the market gets hotter and they want a slice of the pie.
'They may feel that there are now more buyers in the market, or are encouraged by the high number of sales in the previous months,' he said, adding that prices may be revised to attract buyers.
Property consultants also said that Paterson Suites' perks, while not new, have not been seen in the market for some years. Mr Colin Tan, research head at Chesterton Suntec International, said: 'This is because in the central areas, developers see no reason for lowering prices... Now they feel confident enough to give such discounts and that it would attract more sales.'
tamanda@sph.com.sg
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