Developers Promoting Unsold Units From Previous Launches

A number of Singapore property developers are insistently promoting their unsold units from earlier launches; presenting prospective  buyers with attractive and appealing discounts.

Over the weekend, Bukit Sembawang offered 19 units at Paterson Suites, a high-end condo situated at Paterson Road that was finished in 2010. A good number of the homes have been snapped up with the exception of two four-bedroom units nestled on the second and fourth floors.  

In an advertisement carried in The Straits Times, the developer guaranteed a five percent rental yield for a span of four years, or equivalent to S$300,000 yearly (S$25,000 monthly) for a S$6 million apartment. If the rent drops below S$25,000 per month, what’s left will be topped up by the developer.

In addition, owner-occupiers are entitled to a 10 percent discount off the purchase price.

Separately, CEL Development is planning to let loose homes at the 301-unit My Manhattan condo  found in Simei. Despite the fact that the project was started last year, property experts trust the high prices (S$1,219 psf) could have chased off buyers.   

Expected to be completed by the year  2014, the project has so far sold 45 percent or 134 units basing on the data from the URA (Urban Redevelopment Authority).  

Nicholas Mak, Head of Research at SLP International Property Consultancy, said it is ordinary for developers to have unsold units a year or more subsequent to the launch. As such, it is essential to have a re-launch to take advantage of the strong market.

“They may feel that there are now more buyers in the market, or are encouraged by the high number of sales in the previous months,” he said.

Colin Tan, Research Head at Chesterton Suntec International, commented that “in the central areas, developers see no reason for lowering prices… At the moment they feel optimistic enough to give such discounts hoping that it  would attract more sales”.