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Prices of Housing Units Falls for Uncompleted Projects

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During the past three months, the selling prices of some uncompleted projects have plummeted by around 1-7 percent. The fall on selling prices is attributed to the aim of developers to sell units that have been opened to the market for a while.

The Urban Development Authority or URA shared figures showing the decline in the selling prices of D’Leedon and the nearby The Glades and Urban Vista which is located in Tanah Merah. This decline is between the periods of December to February.

Adding to the current dilemma of the developers, consultants claimed that they could be faced with a pressure to offer discount because of the tough competition coming from the latest launches.

Analysts, on the other hand, commented that it could also be due to developers selling out bigger units which led to having lower per square foot price base if compared with the previous months.

As an example, an 850 sqf Urban Vista unit n Tanah Merah Kechil Link was sold for $1,131,953 early in December. But, after two months, a similar unit from the same project and block turned key for 1,080,000. This means that buyers could have saved more than $50,000 if they have waited for two months. This is a warning raised by the URA.

From the price of $1,345 psf during December to $1, 291 in January, there is a 4% decline on the median price.

Fragrance Group and World Class Land’s project sold out 8 units during December and 7 in January. However, in February, the median price of the project descended to 2.4% which is 1,259 psf, just a month after 22 units were sold. As a result, an 554 units out of the 582 were sold before the end of the month with a take rate of 95%.

On the other hand, The Glades still has many unsold units. Out of the 726 units, the project which launched in September 2013 at Bedok Riseonly turned the keys of 140 units before the end of February. From December’s $1,477 psf to $1,385 in January, the project suffered from a 6.2% decline of median price from the sales of new homes. The median price further sank down to 1.7% in February’s $1,362 psf as they try to close 14 units during the month. The Glades paid higher for the land hence their units are sold a bit higher than those of Urban Vista.

D’Leedon by Capital Land also suffered from a decline on their median prices. From the $1,512 psf in December to January’s $1,400 psf, there is a 7.4% decline. It further suffered from a 1% slip in February’s $1,386 psf. The project has turned key around 2 to 5 units in each of the past three months (December – February). By the end of the month, it sold out 1,422 units out of its 1,715.

Reference: The Straits Times 19 March 2014

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