Pasir Ris 8: Behind the price increases

SINGAPORE (EDGEPROP) - In the lead-up to the launch of Pasir Ris 8 on July 24, developers Allgreen Properties and Kerry Properties collected more than 1,500 cheques as expressions of interest across two weeks when it opened for preview. Pasir Ris 8 has only 487 units, which translates to a ratio of more than 3:1. The developer sold 415 units (85%) on the first weekend of launch, at an average price of close to $1,600 psf. (See also: Pasir Ris, a town close to nature and the sea)

Prices had started at about $1,400 psf on the morning of July 24. The developer is said to have increased prices six times throughout the day. The biggest round of price hikes occurred at 8pm, according to agents, where two-bedroom units saw the biggest jump of close to $360,000. A two-bedroom, ninth-floor unit of 710 sq ft with an indicative selling price of $1.145 million ($1,613 psf) at 9am was eventually sold for 31.3% higher at $1.503 million ($2,116 psf) at 10.30pm.

“Prices had started at a reasonable rate, and they were revised upward on several occasions,” according to an agent who requested anonymity. “It’s a function of supply and demand as the developer was gauging the strength of the take-up and increased prices along the way.”

However, some potential buyers took to social media postings to express their views. An investor who declined to be named, related her experience yesterday to EdgeProp Singapore. She was eyeing a two-bedroom unit on the fourth floor of one of the seven blocks.

While waiting her turn, she found that the unit of her choice was already been taken by the time she was in the queue. Her booking slot was initially 4pm, but by the time she entered the queue, it was about 5.30pm. Given that the unit she wanted had been taken, she chose another two-bedroom type as alternative. As more units were sold along the way, the asking price of her selected units increased by $20,000 by 6pm.

When it was her turn to book a unit, it was 6.50 pm. The project was said to be 80% sold by then. The asking price of the two-bedroom unit she had selected was also adjusted upwards by $150,000. “I couldn’t believe it, thus I asked for a confirmation of the pricing,” she recounts in a phone interview. “We were shocked with the price increase. I wasn’t prepared to pay for the huge increase and decided to walk away from the purchase.”

She adds: “If prices increased that much, those who bought earlier were lucky, but it won’t be fair for the later buyers, not to mention that the increase was for the least preferred units.”

On a more philosophical note, she says: ”I guess there will be people who are willing to pay that price. After all, it’s about willing buyers and willing sellers.”