No big new launches + cautious home buyers = lower sales

luxuryasiahome ⋅ June 21, 2011 

The combination of cautious buyers and a lack of large new launches continued to put a dampener on new home sales over the past week.

 

Far East Organization sold 63 units from its properties – excluding Eight Courtyards – with Woodhaven being the top seller with 46 units snapped up.

 

The 337-unit development has now shifted 125 homes at an average price of $931 per sq ft (psf) since its private preview.

 

Far East’s Waterfront Isle sold three units while two units each were sold at Waterfront Key and Waterfront Gold over the week.

 

The cluster-housing project Eleven@ Holland being developed by Clydesbuilt Group off Old Holland Road has found buyers for 14 units at an average of $1,050 psf.

 

The Woods in Jurong has lodged 30 sales at an average of $485 psf over the same period while Far East and Frasers Centrepoint’s Eight Coutyards in Yishun has sold 18 units this month.

 

Market analysts say the lack of large new launches meant reduced interest and so lower sales, although they also point to an increasingly careful mood among buyers.

 

Ms Wendy Tang, Knight Frank’s director of residential services, said the crowds at showflats have thinned, possibly due to the school holidays but maybe also in response to the cautionary comments about the market being made by National Development Minister Khaw Boon Wan.

 

‘There has definitely been some impact, with some buyers holding back,’ she added. ‘Those not in urgent need of a flat are taking their time and going round to different showflats before making up their minds.’

 

But the mood has not killed off sellers’ expectations entirely, given the move to put Brookvale Park in the Sunset Way bungalow estate up for tender with an asking price of $550 million.

 

CB Richard Ellis said this works out to $892 psf per plot ratio (ppr), inclusive of an additional 10 per cent balcony allocation and subject to any development charge payable. A developer can expect to break even at $1,400 psf, it said.

 

Also, Credo Real Estate announced the $85 million – or $665 psf ppr – collective sale of Braddell Park yesterday to Top Global subsidiary Global Star Development.

 

Owners stand to receive between $1.56 million and $2.29 million each of gross sale proceeds. The site can be redeveloped into about 130 apartments of an average of 1,000 sq ft each.