Price trim renews interest in existing projects
By Feily Sofian
/ The Edge Property |
Several developers took advantage of the buying rally in recent launches to move their unsold units. Last November, CapitaLand launched the remaining 182 units at Sky Vue in Bishan and is understood to have offloaded a total of 80 units since.
Separately, Wheelock Properties released an additional 80 units at The Panorama on Ang Mo Kio Avenue 2 in October and November and in turn moved a total of 60 units over both months.
Price trimming was a key factor in driving sales momentum. CapitaLand, for example, is offering a discount of up to $150,000 for the rest of the units at Sky Vue. Unlike many projects where discounts were typically offered for large or less favourable units, the discount at Sky Vue is applicable across unit types.
Meanwhile, the latest units on offer at Sky Vue are located on the 28th floor and above, collectively branded as “The Sky Collection”. CapitaLand refers to them as premium units, where residents can enjoy the panoramic view of the surroundings including Bishan Park. Sky Vue comprises two 37-storey towers with a total of 694 units.
Source: CapitaLand
Anecdotal evidence based on caveats lodged shows that the discount rate at Sky Vue is around 7% across unit types. For example, a 484 sq ft, one-bedroom unit on a high floor was sold for $1,749 psf in the first phase of launch. In November, another 484 sq ft unit located two floors above it found a buyer at $1,639 psf, translating into a discount rate of 6%.
Similar discount rates were seen for three-bedroom units. A 1,141 sq ft, three-bedroom unit on a high floor went for $1,555 psf in the first phase of launch. In November, another 1,141 sq ft unit directly above it was sold for $1,455 psf, or a discount rate of 6%.
The latest sales reduced the number of unsold units in Sky Vue to 102. According to CapitaLand, there is still a mix of one- to three-bedroom units available on the 28th floor and above. Prices start from $821,000, $1.1 million and $1.6 million respectively.
At The Panorama, more than 40% of units sold in 4Q2015 measured between 901 and 1,100 sq ft, followed by 35% in the 1,101-to-1,300 sq ft range. Developer Wheelock Properties seems to be extending discount rates similar to those at Sky Vue, relative to the initial launch price.
A 1,012 sq ft unit on a low floor, for example, was sold for $1,185 psf in October whereas a comparable unit was sold for $1,270 psf in the first phase of launch. This works out to a discount rate of 7%. In another example, a 1,130 sq ft unit on a low floor was sold for $1,192 psf in November, reflecting a 6% discount to the $1,267 psf fetched by a comparable unit in the first phase of launch.
The Panorama was also a consistent performer in 2015, chalking up close to 30 sales a month on average. The project’s average price of $1,229 psf in 2015 was compelling for buyers, given that several projects located further inland have similar or higher price tags.
A confluence of factors
Other top sellers among existing launches were Sims Urban Oasis on Sims Drive and Lakeville in the Jurong Lake District, which recorded 94 and 38 caveats respectively in 4Q2015. While the developers did not trim their prices, both projects continued to ride on the hype surrounding Paya Lebar Central and Jurong Lake District. The 94 caveats lodged for Sims Urban Oasis averaged $1,337 psf, an attractive price point for a city-fringe project with proximity to an MRT station.
At Lakeville, the 38 caveats lodged averaged $1,260 psf. Half of the caveats involved large units measuring between 1,100 and 1,300 sq ft. Lake ville was launched in April 2014 at a median price of $1,318 psf and, within the month, MCL Land sold 91%, or 210, of the 230 units released. The project enjoys a confluence of location attributes including proximity to the Lakeside MRT station, Jurong Lake and the Canadian International School.
Meanwhile, the majority of buyers at Sky Vue are in their 30s or early 40s and aspire to stay in a choice location surrounded by lifestyle amenities, says CapitaLand. Sky Vue is located some 200m from Bishan MRT station — an interchange between the North-South and Circle Lines — as well as Junction 8 shopping mall. The success of its latest launch was also attributed to its upcoming Temporary Occupation Permit estimated at end-2016.
Sky Vue was launched in September 2013. Despite the introduction of the total debt servicing ratio just a few months earlier, buyers snapped up 86%, or 433, of the 505 units launched that month at a median price of $1,401 psf.
The Panorama was launched in January 2014 at a median price of $1,343 psf and is located about 400m from the upcoming Mayflower MRT station on the Thomson-East Coast Line, due to be opened in 2020.
Separately, the resilience of HDB prices in mature estates is a boon for upgraders and private projects in these locations. While the HDB resale price index fell an estimated 1.5% in 2015, the average resale price of four-room HDB flats in Bishan inched up 1% from $526,032 in 4Q2014 to $531,738 in 4Q2015. Meanwhile, the average resale price of five-room flats stayed flattish at $716,000 over the same period. Statistics compiled by HDB showed similar trends. The median resale price for four-room flats in Bishan climbed 2% from $525,000 in 4Q2014 to $537,500 in 3Q2015, according to the latest available data.
In Ang Mo Kio, the average resale price for four-room HDB flats rose 2% from $466,109 in 4Q2014 to $477,125 in 4Q2015. Five-room resale prices leapt 6% from $634,842 in 4Q2014 to $673,856 in 4Q2015. HDB statistics also supported this trend. The median resale price for four-room flats stayed flat at around $450,000 between 4Q2014 and 3Q2015.
The Panorama was also a consistent performer in 2015, chalking up close to 30 sales a month on average. Click here to browse listing in the project.
This article appeared in The Edge Property Pullout, Issue 711 (January 18, 2016) of The Edge Singapore.
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