Source : Business Times - 9 Feb 2009
FRASERS Centrepoint yesterday continued to chalk up steady sales at its Caspian condo even after it raised prices by about $20 per square foot, or about 3.5 per cent.
It sold over 100 units yesterday and by last night, total sales had crossed 300 units - a remarkable result considering the current market gloom.
Frasers Centrepoint began selling the 99-year leasehold condo next to Lakeside MRT Station near Jurong Lake last Thursday evening.
By Saturday night, sales hit the 200-unit level for the initial batch of 250 units priced at $580 psf on average, and that was when Frasers Centrepoint decided to release a new batch of 100 units yesterday morning at the higher price, averaging $600 psf.
Frasers Centrepoint chief executive officer Lim Ee Seng said: ‘We’ve had to be very careful about the price adjustment because we don’t want to turn off the tap. We have a good product, there’s demand for this particular product in this particular location. Our launch has shown where the base price is for the mass market.’
‘We’ve been monitoring sales since adjusting prices. So far, it seems to be OK,’ he added.
‘If we can hit sales of 350 units, that will be enough to fund construction of the project,’ Mr Lim revealed.
Sales of 350 units would also be roughly half the total 712 units in the project, and market watchers reckon Frasers Centrepoint may take a breather in selling further once it reaches this level.
Property consultants were not surprised by the upward price adjustment.
‘Typically, that’s what developers do when there’s demand,’ said CB Richard Ellis executive director Joseph Tan.
BT understands that at the initial $580 psf average selling price, Caspian would be just marginally profitable. Frasers Centrepoint said that about 78 per cent of Caspian’s buyers to date are HDB upgraders.
The remaining 22 per cent have private addresses. Three quarters of the buyers live in the western part of Singapore.
Singaporeans accounted for more than 90 per cent of buyers.
Around 30 per cent of buyers have opted for the interest absorption scheme being offered by Frasers Centrepoint.
They will pay 3 per cent more for their units in exchange for not having to make any further payment (beyond the initial 20 per cent) until the project receives Temporary Occupation Permit.
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