Property hunters have decided to explore and purchase some fresh flats despite the low-spirited market.
According to developer Roxy Homes, the new development called Nova 88 in Balestier, which seems to be the sole official launch thus far in 2009, saw an overwhelming amount of visitors during its showflat. The developer added that the 88-unit project has about 20 percent of its apartments already sold, with prices range of $900 – $990 per square foot (psf).
Project re-launches were also swarmed by potential buyers, which seem to imply that the market’s pockets are still alive. Figures at the Nova 88 showflat were almost identical to those that were attracted in the firm’s launches a year ago. However, the same with the majority of the projects, sales have decelerated, as sellers and buyers opt to look for less-clouded market signals.
Nova 88 was launched by its developer on Saturday following the two-weekend special previews held in the previous month.
Roxy-Pacific CEO Teo Hong Lim said, “We don’t hold back launches as our properties are in the mid-range segment”. Roxy-Pacific is the parent company of Roxy Homes.
“If we advertise today and there are no visitors to our showflats, then the market is dead. But now, potential buyers are still going to showflats, so that is the positive part”, Mr. Teo added. Mr. Teo also mentioned that empty showflats were common in 1997, during the peak of the financial crisis in Asia. However, since the collapse of the Lehman Brothers last year, demands have started to flourish.
“In the pre-Lehman collapse days, I would have launched Nova 88 at $1,250 psf. Now, our style is to go for a reasonable price because we are serious in selling”, Mr. Teo said.
Nova 88 is erected on the ruins of the Aik Khiam Mansion and on a portion of a state land. Together, these two sites cost below $350 per sq ft of gross floor area. A property consultant of the project’s sales stated, “The sales are encouraging”. The consultant also said that developers opt to delay the project launches since buyers worry about their jobs or potential pay cuts.
Showflats of recent launches and re-launches, like Lucida, Newton Edge, The Ambra and The Lucent, are also thronged by several property hunters.
After the Chinese New Year, which is set to take place later in January, project launches are expected to surface. Alexis, which will be offering 293 units and is to be positioned close to Queenstown MRT station, will be one of the anticipated launches despite the fact that developer ECPrime has not yet finalised the prices in Alexis.
ECPrime Director Melvin Poh said, “We adjusted the mix recently such that a large number of the units will be smaller and thus more affordable”. Around 80 percent of Alexis are small units containing one to two bedrooms.