The lackluster sales of luxury homes in Singapore have made developer reluctant to launch new projects.
All in all there are 12 high-end projects with a total of 2,060 homes line up for launching as of last month. So far, only The Rise @ Oxley Residences in the luxurious District 9 has been launched this year.
The launched of this 120-unit project by Oxley Holdings near Orchard Road resulted to the 8 units being sold at the average price of $2,452 psf. This is based on the data from Urban Redevelopment Authority. This launched took after the seven months of stagnancy and the most recent before this took place sometime in October 2013 which included the launches of Good Wood Grand in Balmoral Road, District 10 and Live on Wilkii, Wilkie Terrace in District 9. Both of these projects are freehold.
The former sold nearly 30% or 22 of its units till the end of May with the average selling price of $2,323 psf based on URA. Despite smaller homes, Liv on Wilkie obtained higher take-up rate. the 81-unit project turned 49 keys last in May for an average price of $2,366 psf during the past 6 months.
In order to move the stock, developers have recently cut down prices of their unsold units rather than work on new projects. The luxury home 12 projects that have been waiting in the line since last month include projects by CapitaLand and CDL or City Developments.
Capital Land is working on a 268-unit project located at Caimhill Road. The name of the project is still unknown for the meantime. The developer bought Somerset Grand Caimhill Singapore from its unit for the price of $359 m during 2012. The real estate giant intended to redevelop it into a mixed development of condominium and serviced residence.
On the other hand, CDL is on its way to sell units of 174-unit project- Gramercy Park in Grange Road, where Lucky Tower used to rise. At the same time, the developer will start selling units of New Futura at Hill Road.