Homes with lower quantum or absolute prices generated more sales as evidenced by the results of the four launches held last month, according to The Straits Times.
In a story published last week, it was reported that Keppel Land’s The Glades in Tanah Merah sold only 80 units out of the 200 released during the first day of launch, with average price at S$1,500 psf.
For the same price, CapitaLand sold 410 units at its 694-unit Sky Vue in Bishan.
Analysts noted that while the two projects offered similar psf prices, they registered different results, with buyers going for flats with lower quantum price.
“A property priced at a lower price quantum means that it will be more accessible to a larger pool of potential buyers. This inherently implies more sales,” noted Chia Siew Chuin, Director of Research at Colliers.
The higher percentage of smaller units at Sky Vue also played a vital factor in its sales performance, noted Nicholas Mak, Research Head at SLP International. At Sky Vue, smaller units accounted for 74 percent of the project, while The Glades had only 68 percent.
Meanwhile, TA Corporation’s 420-unit The Skywoods on Dairy Farm Road and UOL Group’s 445-unit Thomson Three in Thomson also faced the same fate.
Thomson Three, where one- and two-bedders accounted for 51 percent of the project, moved 160 units for an average price of S$1,350 psf, while Skywoods, where one- and two-bedders made up only 23 percent, sold just 35 of the 150 units released. Units at Skywoods carried an average psf price of S$1,250.
Although the four projects yielded different results, Alan Cheong, Research Head at Savills Singapore, expects the hype of Thomsom Three and Sky Vue to raise sales at The Glades and The Skywoods.
However, developers might need to offer discounts.
“If you don’t have the first mover’s advantage, you might have to offer discounts to motivate buyers farther afield to take up a unit there,” he said.
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