Strong sales for new condo launches

Source : Straits Times – 30 Jun 2009

STRONG sales in the property market continued over the weekend as mass- and upper-mid- market launches drew crowds of buyers.

Within three days of its preview launch last Friday, the 68-unit Residences @ Killiney project sold 39 of 60 released units – with sales ongoing, a spokesman for developer Hoi Hup Realty said yesterday.

Preview prices at the Killiney Road condominium ranged from $1,700 per sq ft (psf) to $2,000 psf.

Opposite the condo at Devonshire Road, Allgreen Properties’ One Devonshire has sold more than 95 per cent of its 36-storey, 152-unit freehold condo since its launch about two weeks ago.

In the Thomson Road area, Far East Organization sold 84 per cent – or 74 homes – of an initial batch of 88 units at a private preview of its Vista Residences over the weekend.

The 280-unit freehold project offers a range of accommodation from one bedroom to penthouse units starting from $960 psf.

Far East will release another 45 units tomorrow – its official launch date – said Mr Chia Boon Kuah, chief operating officer of the firm’s property arm.

HSR Property Group executive director Eric Cheng noted that the buying activity – which started in mass-market new condo launches – seems to have moved into the higher market segments.

‘This is undoubtedly due to the stock market rally, more positive sentiment, and is enabled by the interest absorption scheme,’ he said.

The scheme allows buyers to pay a deposit and postpone monthly home loan payments until the project is completed.

‘This is attracting the investors to come out in droves,’ he added.

In the mass market, sales continued with Frasers Centrepoint announcing yesterday that its two projects, 8@Woodleigh and Woodsville 28, were sold out.

All 330 units at 8@Woodleigh in Potong Pasir were fully sold last Saturday at an average price of $790 psf. And all 110 units of Woodsville 28 were sold by last Tuesday at an average price of $775 psf.

At Pasir Ris, half of the 142 units at Chip Eng Seng group’s Oasis@Elias previewed over the weekend were sold, said its marketing agent CB Richard Ellis.

On the east coast, the 94-unit Parc Seabreeze in Marine Parade is selling well with the project close to 70 per cent sold, said HSR, which is marketing the project. Units are fetching from $1,050 psf to $1,550 psf.

Mr Colin Tan, Chesterton Suntec International’s head of research and consultancy, noted that there had been ‘pent-up demand’ resulting in strong sales activity, but added that this was ‘not sustainable’.

‘Unlike the boom years, where foreigners made up a huge number of buyers, it is mostly locals who are on this buying spree,’ he said.

Property expert Nicholas Mak expects a moderation of buying activity in the coming months, especially as developers continue to revise their prices upwards.