Tuesday, September 8, 2009

Sales quieten down at Trevista, Trizon

BUSINESS visibly quietened down at showflats last week but developers are already revving up for new launches and releases of new phases of existing projects after Hungry Ghosts Month ends on Sept 18.
However, some market watchers reckon developers may be more careful not to price their projects too aggressively following National Development Minister Mah Bow Tan’s second statement in five weeks that the government is monitoring the property market very closely and will take ‘certain actions’ if necessary.

City Developments is expected to preview Hundred Trees condo on the former Hong Leong Gardens site in the West Coast area in the last weekend of September. Earlier market talk was that the 396-unit project will have an average price of about $930-$980 per square foot (psf). However, some quarters suggest the project will be ‘priced competitively’. The 12-storey development has a 956-year-leasehold tenure. The Hundred Trees condo will be decked with Mempat trees, often dubbed the local version of Japan’s sakura or cherry blossoms.

At Keng Chin Road in the Bukit Timah area, Far East Organization is expected to preview in a few weeks a 278-unit freehold condo named Cyan. A stone’s throw away, Keppel Land has sold about 65 per cent of its 56-unit freehold Madison Residences since last month at an average price of about $1,700 psf. This pricing applies to those who opt for the interest absorption scheme (IAS). Buyers who prefer a normal progressive payment scheme pay 2 per cent less. Even more projects are slated for launch in October, including Ho Bee’s Trilight on the former Elmira Heights site on Newton Road, as developers try to catch possibly the last wave of home buying for 2009 before the year-end school holiday season.

NTUC Choice Homes sold 50 units at its Trevista condo in Toa Payoh last week, mostly on Saturday and Sunday. This is significantly below the 410-unit sales achieved from Friday to Sunday of the preceding week when the developer previewed the 99-year-leasehold condo. To date, Choice Homes has released 550 of the condo’s total 590 units.

‘The remaining units in the project are mostly three and four-bedroom apartments. Prices start from $884 psf or $1.008 million for three-bedders and $850 psf or $1.448 million for the four-bedroom apartments,’ a Choice Homes spokeswoman said yesterday. Trevista’s initial average price was $898 psf, but with subsequent releases of units – some with better facing and on higher floors – the average price achieved is understood to be about $920-$930 psf.

BT understands that things were even quieter at the Trizon showflat in the Mount Sinai area. Units in the freehold project cost $1,250 psf to $1,550 psf. Sales are said to have plummeted last week after the slightly more than 100 units sold in the previous weekend’s preview. A property consultant said: ‘When a minister, especially the National Development Minister, comes out to urge buyers to be cautious, it has its effects – at least for the time being.’ ‘When the caution is being urged in the Seventh Month  (when traditionally things are a bit slower in the property market), potential buyers have time to reflect on the message,’ he added.

Following six months of surprisingly strong home sales, developers have upped prices. By some estimates, prices of mass-market homes increased about 10-15 per cent from the lows of January-February 2009 to July-August. In late July, Mr Mah urged home seekers to research the property market thoroughly and seek affordable units. Last week, he advised them to ‘think carefully, think long term, think about the unexpected’ before buying a property. He also said there is a ‘definite possibility’ that the government will re-introduce land sales through its confirmed list system from next year. Such sales have been suspended since October last year.

All eyes are on today’s tender for  a plum 99-year condo plot at Dakota Crescent next to an MRT station and fronting Geylang River.

Source : Business Times – 8th Sep 2009

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