Yesterday, Frasers Centrepoint continued to accumulate stable sales at its Caspian condominium even after it increased prices by nearly $20 per square foot, or approximately 3.5 percent.
It sold more than 100 condo units yesterday, and last night, its total sales marked 300 units – a notable result considering the present market depression. Frasers Centrepoint started putting up the 99-year leasehold condominium for sale beside the Lakeside MRT Station close to Jurong Lake last Thursday night.
By Saturday evening, sales reached the 200-unit level for the first set of 250 units at an average of $580 per square foot, and that was after Frasers Centrepoint determined to launch a new set of 100 condo units yesterday at an elevated cost, averaging $600 per square foot.
According to Lim Ee Seng, the chief executive officer of Frasers Centrepoint, “We’ve had to be very careful about the price adjustment because we don’t want to turn off the tap. We have a good product, there’s demand for this particular product in this particular location. Our launch has shown where the base price is for the mass market.”
“We’ve been monitoring sales since adjusting prices. So far, it seems to be OK. If we can hit sales of 350 units that will be enough to fund construction of the project,” he revealed.
Transactions of 350 units will also reach almost half the whole 712 units in the said project, and several market observers consider that Frasers Centrepoint may have a break in dealing further once it arrives at this level. Estate consultants were unsurprised by the increasing price adjustment.
Joseph Tan, the executive director of CB Richard Ellis, said, “Typically, that’s what developers do when there’s demand.” With the original $580 per square foot average selling cost, Caspian will be just slightly profitable. Frasers Centrepoint noted that around 78 percent of Caspian’s purchasers up to now are HDB developers.
The remaining 22 percent contain private addresses. Three-fourths of the purchasers live in western Singapore. Singaporeans described over 90 percent of buyers. Around 30 percent of buyers have decided because of the Interest Absorption Scheme that is offered by the Frasers Centrepoint.
They will pay 3 percent more for the condo units in exchange of making any additional payment further than the initial 20 percent until the project obtains Temporary Occupation Permit.