Pasir Ris 8 same day price hikes raise developer expectations especially for Normanton Park
Sep 1
SINGAPORE - In the lead-up to the launch of Pasir Ris 8 on July 24, developers Allgreen Properties and Kerry Properties collected more than 1,500 cheques as expressions of interest across two weeks when it opened for preview. Pasir Ris 8 has only 487 units, which translates to a ratio of more than 3:1. The developer sold 415 units (85%) on the first weekend of launch, at an average price of close to $1,600 psf.
Such news only brings confidence to Normanton Park developers as they looked to increase their prices as well.
Prices were at $1,400 per square foot on July 24, the morning. According to the developer, prices were increased six times during the day. Agents claim that the largest price increase occurred at 8pm. Two-bedroom units saw the greatest jump of nearly $360,000. At 10.30 pm, a two-bedroom unit on the ninth floor measuring 710 square feet sold for 31.3% more at $1.503million ($2,116 per sqf).
According to an agent, prices had been set at a reasonable rate and were later revised upwards on multiple occasions." The agent requested anonymity. It's a function supply and demand, as the developer was trying to gauge the strength of take-up and increasing prices along the route.
Some potential buyers, however, took to social media to voice their opinions. EdgeProp Singapore was contacted yesterday by an anonymous investor. She was looking at a unit with two bedrooms on the fourth floor in one of the seven blocks.
As she waited for her turn, she discovered that the unit she wanted had already been booked. Although her booking slot was originally at 4pm, by the time she got into the queue it was 5.30pm. She chose a second two-bedroom unit as an alternative because the one she wanted was already taken. The asking price for her units rose by $20,000 as more units were sold.
It was 6.50 p.m. when it was her turn to reserve a unit. By that time, the project had been sold 80%. She also increased the asking price for the two-bedroom unit by $150,000. She recounted in a telephone interview that she couldn't believe the price and asked for confirmation. "We were shocked by the price hike. I was not prepared to pay the massive increase in price and decided to walk out of the purchase.
She says, "If prices rose that much, those who purchased earlier were fortunate, but it won’t be fair for later buyers, not even considering that the increase was for less preferred units."
She adds, "I suppose there will be people willing to pay this price." It's all about willing buyers and willing vendors. For more information on Normanton Park, do visit their website at https://www.normantonpark-condos.sg