Most developers unlikely to give discounts

Most developers unlikely to give discounts

At least one property developer here is offering an effective discount on homes in the wake of the latest cooling measures.
But property experts do not expect all developers to follow suit.

Far East Organization's immediate response was to give a 2 per cent furniture voucher for units at its newest launch, eCO, to mitigate the effects of the new home loan rules.

It is now giving a 1.5 per cent sweetener - in the form of furniture vouchers - until Thursday, for eCO at Bedok South Avenue 3.

Far East is also offering furniture vouchers for other projects in response to the measures.
At the weekend, it sold a total of 51 units at various projects. eCO was the top performer.

Qingjian Realty (South Pacific) said it sold 15 units at two projects, River Isles and Riversound Residence in Punggol.

"As our buyers tend to be younger, it does not affect the sales for the two projects. Hence, we did not offer any discounts to mitigate the recent cooling measure," said Mr Li Jun, Qingjian's deputy general manager.
It was a similar story for city centre condominium V on Shenton.

Mr Michael Ng, group general manager of developer UIC, said the measures did not affect sales much. Five units were sold at the weekend.

"Our buyers are mostly upper-end investors who have ready cash," he said.
"(The new rules will affect more) the heartlanders who are looking to buy a second or third property... They will have to think more carefully."

But Allgreen Properties, behind recent launch Riversails, said weekend sales were slightly slower than sales in the previous week. Since last Friday, 80 units have been sold.

"We think there was probably a marginal impact... as with any knee-jerk reaction," said sales director Yong Voon Chen.

"We understand the latest measures imposed and fully agree with the thinking behind them. However, we believe the impact will be minimal in the long run," he added.

Koh Brothers, behind projects such as Parc Olympia in Pasir Ris, also said it was not offering perks or discounts now.

"Based on our experience, buyers in Singapore generally do not take up loans above a 35-year period. Hence, we do not expect the newly implemented cooling measure of a loan limit cap to significantly affect buyer sentiment," the developer said.

A City Developments spokesman said: "As these measures have just been released, the market will take time to absorb the news, and we will assess the situation accordingly."

Source: The Straits Times – 9 October 2012