Singapore Property | Low sales affecting private property prices, price cuts not expected to be too large. Daintree Residence served as the example of what the new property cooling measures could do since it entered on the 5th of July. Following projects after that are expected to be sold at lower prices following the effects of the curbs as analysts predict.
As a way to compensate in line with the Additional Buyer’s Stamp Duty (ABSD), incentives such as a five percent reduction in the launch prices in hopes that buyers will be lured to the properties. To be more specific, properties like the Parksuites in Holland Grove Road are examples of those properties offering such discounts for limited time.
In other cases, in order to entice agents to reach out more, developers offer higher commissions to their property agents.
Hiring more marketing agencies is also an option to ride with the new curbs and the Tre Ver in Potong Pasir hired six agencies to bolster their launch for the weekend.
Furthermore, according to the senior director for research of Cushman & Wakefield, Christine Li, the US-China trade tensions are also playing a part in the current setting of the property scene where mortgage and cooling measures are much more ruthless.
Furthermore, according to Li, developers have an option to delay the launches of their better units and wait up on better demands from the public – such in the case of Park Colonial, The Jovell in Flora Drive and South Beach Residences. In the meantime, developers may also choose to set lower and more reasonable prices for their other units, Li added.
One of the developments doing the said strategy is Park Colonial in Woodleigh where the showflats are already closed and preparing for a better wave of demand.
"They are probably waiting for other upcoming launches in the vicinity such as The Tre Ver and Woodleigh Residences to observe the market performance and pricing of their competitors to decide if they should adjust the pricing of the balance units they hold," Li said.