Property developers remained cautious in launching new private units for sale during April, and although sales were 55 per cent higher than in March they were still well below the 1H 2013 monthly average prior to the imposition of the Total Debt Service Ratio (TDSR), according to real estate agency JLL.
Two new private residential projects, Lakeville and The Sorrento (pictured), were launched in April, and according to JLL these were priced realistically and achieved good sales take-up.
Lakeville sold 210 of the 230 units launched at a median price of $1,318 psf, and this compares favourably with the median price of $1,486 psf for J Gateway when it was launched in April 2012.
The Sorrento sold 125 of the 131 units launched at a median price of $1,414 psf while at nearby Seahill, sale prices in 2013 averaged $1,680 psf. According to JLL The Sorrento has been able to attract buyers with its reasonable pricing. Amongst projects launched earlier, Sky Habitat sold 130 units at a median price of $1,377 psf – well below the median price of $1,583 psf when the project was launched in April 2012.
Both Lakeville and The Sorrento are located in Outside Central Region (OCR). OCR accounted for 65 percent of private home sales by developers in April, while Core Central Region (CCR) and Rest of Central Region (RCR) accounted for 3 percent and 32 percent respectively.
Ong Teck Hui, National Director of Research & Consultancy at JLL, said: “With reduced demand in the market and buyers looking for bargains, pricing is crucial in moving sales. Currently, the sweet spot seems to be a 10 to 15 per cent price adjustment below previous levels in order to attract buyers.”
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Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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