Tag Archives: Kingsford Hillview Peak

Developers get creative to sell units

To entice home buyers amidst the challenging housing market, developers are resorting to new marketing gimmicks, like holding games where everyone wins a prize, organising trips to Singapore, and launching their projects in other countries, reported The Straits Times.

For instance, Kingsford Development held a ‘Property Tycoon Challenge’ for buyers of Kingsford Hillview Peak in Upper Bukit Timah over the weekend.

Styled after Singapore’s Mandarin version of ‘Who Wants to be a Millionaire’, the top prize at stake is a $250,000 cash rebate. But every contestant will be leaving with at least $5,000 in cash rebates, which will increase if they give the correct answers to the questions in the game. Buyers also have a chance to win an electric scooter and two hoverboards in a separate contest.

Meanwhile, Guangzhou-based Country Garden has teamed up with travel agencies to host Singapore tours for Chinese tourists, in the hope they will purchase units in Forest City, a mega project sited on man-made islands near the Tuas Second Link.

According to its spokesperson, the three-day trip, which includes a drive into Johor Bahru, is mainly for shopping and sightseeing, with expenses to be borne by the visitors.

The developer is also dangling discounts of up to 20 percent for those who purchase early, and pay in cash. “Promotions vary by property type, payment formality and time period,” said the spokesman.

In addition, some developers are launching their new projects in emerging economies to woo affluent buyers there.

For instance, City Developments Limited (CDL) held a property showcase in Jakarta over the weekend for its Gramercy Park project, to be followed next weekend in Surabaya, wherein one tower with 87 units is being offered in the range of $2,800 psf.

The 174-unit project will be unveiled in Singapore soon, and there are also plans to hold similar events in Hong Kong and mainland China, noted a company spokeswoman.

CDL’s move follows CapitaLand’s successful launch of Cairnhill Nine in Indonesia. It rolled out the development in Jakarta in late February before launching it here last month.

The project has found buyers for 193 of its 268 units, with foreign buyers, mostly Indonesians, contributing 50 percent of the sales, added a CapitaLand spokesman.

Advertisements

Home buying momentum remains despite slower sales

Sales of new private homes in Singapore fell 16 percent to 322 units in January this year from the 384 units sold in December 2015, according to latest data from the Urban Redevelopment Authority (URA).

Including executive condominiums (ECs), developers sold 478 units in January, down from 508 units previously.

Year-on-year, developer sales (excluding ECs) dropped 14 percent from the 376 units sold in January 2015.

Despite the drop in sales, analysts believe that there continues to be traction in the market.

“There is still a momentum that’s underpinned by genuine buyers looking to buy a home for owner-occupation. Buyers are steadily picking up previously launched projects – both private homes and ECs,” said CBRE’s Desmond Sim, Head of Research Singapore & Southeast Asia.

“Despite the fact that there have been no new EC launches for the past three months, the market registered EC sales of an average of 155 units. Developers have been drip feeding the private home market with units of previously launched projects.”

The top-selling private residential projects in January were The Poiz Residences, Kingsford Hillview Peak, Sims Urban Oasis, Botanique at Bartley and The Panorama, revealed JLL, which attributed their better sales performance to their proximity to MRT stations and amenities.

For ECs, the better performing projects were The Amore, CDL’s The Brownstone, and The Vales.

Looking ahead, Ong Teck Hui, National Director, Research & Consultancy at JLL, reckons that the biggest immediate threat to stability in the residential property sector is the volatility in the stock market.

“As the volatility continues, a soft landing for the private home market in 2016 appears less likely. Buyers would become more cautious and developers would be less confident in launching new projects.”

He noted that the correlation between the stock market and the residential market can be significant, as seen during the last global financial crisis (GFC) when the stock market plunged 62 percent between October 2007 and March 2009, and developer sales dropped 71 percent to 4,264 units in 2008 from 14,811 units in 2007.

“While current financial market conditions are considered less severe than the GFC, continued volatility in the stock market is still likely to have an adverse impact on the residential market,” added Ong.