Developers lowering launch prices: URA data

Developers lowering launch prices: URA data

Developers appear to be lowering the prices of their launches, with fresh figures showing prices for uncompleted homes falling slightly in the second quarter.
Data from the Urban Redevelopment Authority showed that prices of uncompleted non-landed homes dipped 0.9 per cent in the three months to June - the first fall since mid-2009.

Prices for completed private homes, however, climbed 2.3 per cent. Experts say the fall could be explained by the fact that some launches in the period were in less desirable locations, including those further from MRT stations and amenities, thus fetching lower prices.

Another factor they cited is that some of the new launches were in estates such as Punggol and Pasir Ris, where many projects had already been pushed out. This led to stiff competition and more conservative pricing.

Prices for homes in the city centre have fallen 0.6 per cent. This is at a steeper rate than the 0.2 per cent slide in the first quarter.

This could be tell-tale signs of deepening fault lines in the high-end market, where some developers might be beginning to succumb to the pressure of persistent weak demand by reducing price in order to move sales.
Experts add that mass market home buyers are price sensitive, and projects priced less than $1,000 per sq ft (psf) have been seeing higher take-up rates.

Source: The Straits Times – 28 July 2012