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Price Cuts Don't Necessarily Leads To Soaring Sales For New Private Homes
By iCompareLoan Editorial Team
The latest figures from Urban Redevelopment Authority (URA) showed new private home sales
picking up in April following bleak numbers in March. In that month, only 535 units (inclusive of
executive condominiums (ECs)), changed hands, and of the two projects launched - Ascent@456
and The Santorini - the combined sales figure was a dismal 12.16 per cent, or 76 out of 625 homes
released.
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By contrast, April moved a total of 793 units. Of these nearly half, or 335 units, were from two
property launches in that month. Lakeville and The Sorrento made their debut then. MCL Land, the
developer of the 696-unit Lakeville, introduced 230 units into the market and 210 were sold. On
the other hand, all the units in The Sorrento were released for sales, and transactions were a brisk
125 homes out of 131.
Median price for Lakeville stood at $1,318 psf and $1,414 psf for The Sorrento. According to JLL
national director Ong Teck Hui, the pricing is competitive relative to historical transactions in the
area, and this gave a fillip to demand.
Market veterans attributed the recovering sale figures to reasonable pricing by developers of new
launches and newly-released units from older launches that are priced at a discount to their initial
launch prices.
Using figures from URA monthly new private residence reports, we examine the projects that are
sold in April at lower prices to their launch prices.
Excluding the two new launches in April, we only study projects that were launched after the TDSR
framework was implemented in June 2012 and / or projects that sold 10 or more units in April.
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Table 1a: Projects Sold At A Discount in April 2014 & Their Prices
Project
Name
% Of
Total Cumulat
Price
Median Price
%
Unsold Median
Number ive Units Units
Range
Price Range Change
Units Price
Launch
of Units Launche Sold In
($psf)
($psf) in ($psf) in in
In
($psf)
Month
in
d but April
in
Launch Launch Median
Entire in April
Project Unsold
April
Month Month Price
Project
Grandview
Suites
52
7
4
13.46
Sky Habitat
509
18
130
3.54
463
28
5
6.05
868
64
10
7.37
48
27
1
56.25
1351
34
18
1
52.94
1600
726
71
15
9.78
1425
495
48
9
9.70
1051
555
26
7
4.68
981
266
14
7
5.26
1396
495
106
2
21.41
797
862
186
19
21.58
1313
73
9
3
12.33
2404
260
61
9
23.46
1610
Vue 8
Residence
Bartley
Ridge
The Bently
Residences
@ Kovan
8 Farrer
Suites
The Glades
Rivertrees
Residences
Riverbank
@ Fernvale
The Venue
Residences
Sea Horizon
Eight
Riversuites
Goodwood
Grand
The Creek
@ Bukit
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1033 1088
1273
1377
-1622
868881
1042
1106 1171
1244
1045
Oct-13
1301
Apr-12
1583
Jul-13
1004
Mar-13
1296
1351 Aug-13
1351
1451
1600 1600
1210 1604
971 1218
830 1103
1281 1471
787 807
1105 1472
2366 2544
1501
-1802
Aug-13
1709
Sep-13
1518
Feb-14
1111
Feb-14
1033
Oct-13
1457
Sep-13
818
May-12
1340
Oct-13
2449
Nov-13
1637
1190 (19.68)
1523
1435 (13.01)
1893
819 (12.25)
1204
1031 (9.65)
1514
1410 1461
1506 1725
1252 1785
943 1276
837 1250
1300 1563
713 933
1056 1670
2449 2449
1486 1882
(6.89)
(6.38)
(6.13)
(5.40)
(5.03)
(4.19)
(2.57)
(2.01)
(1.84)
(1.65)
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28 Rc Suites
45
Skypark
506
Residences
The
337
Tembusu
Source: URA
29
2
64.44
209
7
41.30
62
5
18.40
1680 Aug-13
1682
768 794
Nov-13
818
1197 1541
Aug-13
1657
1681
1698
800
1547
1482 1722
738 896
1210 1704
(1.00)
(0.75)
(0.39)
Table 1b: Projects Sold At A Discount in April 2014
Project Name
Street
Region
Property Type
Grandview Suites
Geylang
RCR
Non-Landed
RCR
Non-Landed
OCR
Non-Landed
Sky Habitat
Vue 8 Residence
Bishan Street
15
Pasir Ris
Heights
Bartley Ridge
Mount Vernon
Road
RCR
Non-Landed
The Bently Residences
@ Kovan
Kovan Road
OCR
Non-Landed
8 Farrer Suites
Sing Joo Walk
RCR
Non-Landed
The Glades
Bedok Rise
OCR
Non-Landed
Rivertrees Residences Fernvale Close
OCR
Non-Landed
Riverbank @ Fernvale Fernvale Close
OCR
Non-Landed
RCR
Non-Landed
The Venue Residences
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Tai Thong
Crescent
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Sea Horizon
Pasir Ris Rise
OCR
EC
Eight Riversuites
Whampoa East
RCR
Strata-Landed / NonLanded
Goodwood Grand
Balmoral Road
CCR
Strata-Landed / NonLanded
The Creek @ Bukit
Toh Tuck Road
RCR
Non-Landed
28 Rc Suites
Race Course
Lane
RCR
Non-Landed
Skypark Residences
Sembawang
OCR
EC
The Tembusu
Tampines Road OCR
Non-Landed
Source: URA
From Table 1a, we note that for the nine projects with at least a five per cent drop in the median
price ($ psf) for April from the initial median price at launch, only Sky Habitat at Bishan moved
more than 50 per cent of its remaining unsold units. In fact a spectacular 130 units, or 87.8 per cent,
were sold after median price ($ psf) dipped by 13.01 per cent.
However, none of the other projects replicated this remarkable sales figures. Even among those with
median price($ psf) cuts of close to 10 per cent or more, the number of units that changed hands
were not eye-popping.
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Grandview Suites' median price ($ psf) slided by a huge 19.68 per cent, but only four units out of 11
saw takers. This can be attributed to its sleazy location at Geylang.
But even homes in more respectable areas did not experience overwhelming demand after price
cuts. Vue 8 Residence at Pasir Ris had a median price ($ psf) dive of 12.25 per cent but sold units
were merely five. Similarly, Bartley Ridge with its favourable location at the city fringe and next to
the Bartley MRT Station, only transacted 10 units from a pool of 74 units, despite a wide 9.65 per
cent median price ($ psf) drop.
The stellar results for Sky Habitat then can be due to its highly popular location in Bishan, and the
marketing for its re-launch, along with its revamped showflat.
This suggests that booming sales is not a foregone conclusion even with attractive price slashes –
attesting to the highly cautious mood among buyers in this tightly regulated property market.
Separately, we look at some projects which median prices ($ psf) in April had rose from their initial
launches. And yes, there are buyers notwithstanding, though few in numbers.
Sky Vue in Bishan witnessed a median price ($ psf) jump of 18.92 per cent, and its minimum price
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surged from $1,135 psf at its launch to $1,615 psf, but still two units found buyers.
Duo Residences - an iconic upscale mixed development in the prime Bugis area - likewise, saw a
significant median price ($ psf) spike of 16.91 per cent, but nonetheless sold two units. Its minimum
price also upped from $1,513 psf to $2,262 psf.
Prime homes will invariably find buyers even with premium prices in a weak market.
Table 2a: Projects Sold At A Hike in April 2014 & Their Prices
Project
Name
Sky Vue
Duo
Residences
The Quinn
Nine
Residences
La Fiesta
Lush Acres
Cumula % Of
Total
tive Unsold Units Median Price
Number
Units Units Sold Price Range
of Units
Launch In
In ($psf) ($psf) in
in
ed but Entire April in April April
Project
Unsold Project
1615 694
9
1.30
2
1666
1717
2262 660
45
6.82
2
2337
2412
1624
139
120 86.33
1
1624
-1624
1022 186
53
28.49
5
1170
1249
972 810
8
0.99
14
1216
1242
380
0
0.00
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1
823
Launch
Month
Sep-13
Nov-13
Jul-13
Oct-13
Jan-13
823 - 823 Aug-13
Price
Median
Range
Price
($psf)
($psf) in
in
Launch
Launch
Month
Month
1135
1401
-2031
1513 1999
2596
1366 1530
1592
871 1107
1284
956 1163
1359
673
790
-880
%
Change
in
Median
Price
18.92
16.91
6.14
5.69
4.56
4.18
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The
Skywoods
Q Bay
Residences
Rv
Residences
Guillemard
Suites
Liv On
Wilkie
420
342
81.43
8
1336
630
5
0.79
12
1048
248
50
20.16
4
2114
146
51
34.93
8
1407
81
11
13.58
1
2592
Ecopolitan
512
96
18.75
3
808
Rezi 3two
65
50
76.92
3
1541
597
500
83.75
23
1124
22
8
36.36
4
1515
445
46
10.34
3
1380
Forestville
653
170
26.03
13
Waterwoods
373
186
49.87
18
The
Santorini
Berkeley
Residences
Thomson
Three
1216
-1353
905 1106
2090 2135
1257 1696
2592 2592
Sep-13
1290
Jan-13
1012
Aug-13
2043
Nov-13
1360
Oct-13
2519
788 - 816 Aug-13
793
1373 1548
867 1251
1480 1532
1290 1488
Nov-13
1519
Mar-14
1108
Nov-13
1496
Sep-13
1363
739
654 - 779 Jun-13
730
809
766 - 846 Nov-13
801
1119 1450
823 1277
1893
-2091
1146 1672
2350 2582
677 871
1374 1594
1022 1274
1400 1591
998 1533
565 816
743 863
3.57
3.56
3.48
3.46
2.90
1.89
1.45
1.44
1.27
1.25
1.23
1.00
Source: URA
Table 2b: Projects Sold At A Hike in April 2014
Project Name
Street
Sky Vue
Bishan
RCR
Non-Landed
Duo Residences
Fraser Street
CCR
Non-Landed
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The Quinn
Bartley Road
OCR
Non-Landed
Nine Residences
Yishun
OCR
Non-Landed
La Fiesta
Sengkang
Square
OCR
Non-Landed
Lush Acres
Fernvale Close
OCR
EC
The Skywoods
Dairy Farm Heights
OCR
Non-Landed
Q Bay
Residences
Tampines
Street 86
OCR
Non-Landed
Rv Residences
River Valley Road
CCR
Non-Landed
Guillemard
Suites
Guillemard Road
RCR
Non-Landed
Liv On Wilkie
Wilkie Terrace
CCR
Non-Landed
Ecopolitan
Punggol Walk
OCR
EC
Rezi 3two
Geylang
RCR
Non-Landed
The Santorini
Tampines
OCR
Non-Landed
Lorong N Telok Kurau OCR
Non-Landed
Berkeley
Residences
Thomson Three
Bright Hill Drive
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RCR
Strata-Landed /
Non-Landed
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Forestville
Woodlands Drive 16
OCR
EC
Waterwoods
Punggol Field Walk
OCR
EC
Source: URA
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