2 new condos in east see strong sales

[Musicwhiz]

Here we go again! Cash-rich people still buying despite tough curbs.

The Straits Times
www.straitstimes.com
Published on Mar 16, 2013
2 new condos in east see strong sales

TWO condominiums in the eastern region racked up impressive sales at their previews yesterday.

The 582-unit Urban Vista in Tanah Merah sold more than 180 out of the 230 units launched at its preview. The average price per sq ft (psf) was $1,350.

Nearly 280 buyers who had already lodged an interest turned up for the balloting process, joining a lengthening queue that formed after the 10am opening.

Many of the buyers The Straits Times spoke to were investors keen on the location, with Changi Business Park nearby and an upcoming commercial and retail development next door.

A 65-year-old investor from Tanah Merah who wanted to be known only as Mrs Yuan bought a one-bedroom loft because she liked the area for its mainly private homes. "Pasir Ris is congested with ECs (executive condominiums) and Bedok is still a heartland area. The area where Urban Vista is located is a private enclave," she added.

Mrs Yuan already owns more than two properties so she will be subject to the additional buyer's stamp duty (ABSD).

Other buyers at Urban Vista were in the same boat but seemed undeterred.

"We didn't reconsider because the rules keep changing, and it's only our first investment property," said lecturer Lin Mei Ling, 33, who bought a two-bedroom unit.

Singaporeans buying a second property must pay a 7 per cent ABSD while those buying their third and subsequent property will pay an added levy of 10 per cent.

The project, developed jointly by Fragrance Group and World Class Land, comprises one- to four-bedders.

The other project having its preview yesterday was the 912-unit D'Nest, which had a robust response with more than 350 flats of the 450 released sold by 5pm. Average prices were $920 psf.

The Pasir Ris condo is jointly developed by City Developments (CDL), Hong Leong Holdings and Hong Realty.

CDL said in a statement yesterday: "To cater to the strong demand, CDL had to release more units progressively. There was a good take-up rate for the range of apartment sizes, from one- to five-bedroom types, including penthouses."

Urban Vista and D'Nest are expected to be issued temporary occupation permits in 2017.

CHERYL ONG

[nsengkia]

Don't despair. I would suggest that you take the figures with a pinch of salt.

Sometime ago, I went to take a look at Sky Habitat shortly after it was launched. The announcements in the press were equally bullish i.e. a very high percentage of the units released were sold! But when I talked to the sales staff as to whether it was possible to buy any of the unlaunched units, the answer was an unequivocal YES!

It would appear that quoting units sold and contrasting it against units launched is a sales gimmick to try to create the impression of "limited time offer".

Think about it. Unless the market is steadily rising, why would any developer hold back and not release units for sale if he can get them sold at the price he wants and hands off the risk of a market crash to the buyers? After all, in the current environment, if the market does go up there will be another round of Government measures to cool it.

So I recast the announcements as:

a. The 582-unit Urban Vista in Tanah Merah sold (ONLY) 180 out of its 582 units.

b. The D'Nest, had a robust (Sic!) response with 350 flats out of its 912 units sold.

I hope the recast announcements make you feel better.

Cheers!

[a74henry]

That is, about 1/3 sold. Hopefully, these investors do not change their mind after placing their option fees.

The Feb 2013 property sales volume announced by URA may make investors rethink about buying a residential property especially with the ABSD.