SINGAPORE - The launches of two residential projects over the long weekend were met with muted response, with the Parc Life executive condominium (EC) project in Sembawang by Frasers Centrepoint Limited (FCL) and Keong Hong Holdings selling over 50 units of the total 628 units as at Monday.
This translates to a take-up rate of 8 per cent, despite the developers throwing in S$3,000 worth of Frasers shopping mall vouchers for people who purchase units of two bedrooms to five bedrooms on Saturday.
The vouchers were to be issued upon temporary occupation permit during the key collection period, according to agents.
Agents touted the price guide for Parc Life to be 2-5 per cent lower than the original price list.
According to FCL, units at Parc Life were sold at an average price of S$775 per square foot (psf); two-bedroom units start from S$578,550 while three-bedroom units start from S$660,250.
There was "keen interest" from an equal proportion of first and second-time buyers across the units sold, FCL said.
The three and four-bedroom apartments, ranging from 926 sq ft to 1,109 sq ft, made up 95 per cent of units sold.
Some agents attributed the poor take-up at Parc Life to the timing of the launch, which took place soon after the launch of the 632-unit EC project The Visionaire by Qingjian Realty. Qingjian sold 158 units during the launch last week and another six units over the long weekend.
"When you have too many EC units launching within a very close time period to each other, it is a case of temporary oversupply in that location," said SLP International executive director Nicholas Mak.
Century 21 Singapore's Ku Swee Yong noted that there is also competition from the new HDB build-to-order (BTO) flats, for which the gross monthly household income ceiling has been raised to S$12,000. "Both first timers and upgraders might not consider ECs in the suburban areas when they could apply for HDB BTOs very near town, such as in Bidadari."
For private residential project Sturdee Residences, nine units were sold during its official launch over the weekend, after 122 units or 40 per cent of units were sold during a preview event on April 23.
The 305-unit private condominium project is developed by a consortium, with Sustained Land's subsidiary SL Capital taking the majority stake.
Meanwhile, Cheung Kong Property Holdings has postponed the preview at its S$10 million showflat for mixed-use project Stars of Kovan from last weekend to May 7.
It will be launching the 390 residential apartments at Stars of Kovan at an average S$1,550-1,600 psf. There are also five strata terrace units and 46 strata-titled commercial units, which are marketed by CBRE.
This article was first published on May 4, 2016.
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