Q Bay Residences at Tampines is the first private residential project to be launched since the latest round of property cooling measures kicked in last weekend.
To attract buyers, the developer is offering discounts of up to
22%.
Market experts said Q Bay Residences will be a test of home
buyers' appetite for new developments
The 630-unit project, which is a
joint venture by Frasers Centrepoint, Far East Organization and Sekisui House.
It will be launched at an average selling price of $985psf
after all discounts this Saturday.
This is below the price of most other
new suburban launches out in the market for more than $1,000psf.
The developers of Q Bay Residences said about 550 to 600 buyers put in
cheques for pre-booking but about 100 withdrew after the cooling measures were
announced.
The developer said many are likely to be third and fourth-time
property buyers but they are hoping that the project's location in Tampines will
entice buyers.
Cheang Kok Kheong,
chief executive officer of development & property at Frasers Centrepoint
Limited, said: "In Tampines, there has not been many condominiums over the last
eight years. There is sort of a pent up demand, people that have been upgrading,
have to move on to places like Woodlands and Punggol. But now, the people who
own HDB flats are able to continue living in Tampines at Q
Bay."
Meanwhile, analysts noted that developers should now be targeting
first-time property buyers and pricing is key.
Chris Koh, director of
Chris International, said: "It's good that they didn't cross the $1,000psf
barrier mark, because if they do, it may scare many people off. By keeping it
below $1,000psf, it looks more attractive.
"There's very little
comparison because we don't have many developments in that area, but we also
know of developments in suburban areas, 99 year leases, that sell at $1,200
psf. On top of that, it's the discount that will make people bite. We're talking
about a 15% and an absorption of the Additional Buyer Stamp Duty up to
seven per cent."
Experts said the Q Bay Residences project will be a test
bed for the market.
Developers are expected to continue with their
launches if the sales volumes for the project is healthy.
Q Bay
Residences is expected to be completed in May 2017.
Source: Channel News Asia
Don't be tricked. These discounts are not 100% genuine. Even way before any cooling measures were introduced, discounts of 15% + 5% + 2% etc have been offered. It's just a marketing structure and strategy.
ReplyDeleteAs for average selling price of $985 psf, note that you can have shoe box units priced at say $1200 psf and big units priced at below $985 psf.
Let's see how it goes.