TODAYonline | Singapore | Is it all about price at Centrale 8?
After hogging the headlines for the wrong reasons, the first weekend of Centrale 8's (picture) walk-in-and-buy phase got off to a slow start.
The Sim Lian Group, the developer of the Design, Build and Sell Scheme (DBSS) project in Tampines, had earlier drawn flak for its initial prices of up to a record S$880,000 for five-room flats, before confirming the maximum price at S$778,000.
MediaCorp had reported on Saturday that when doors opened for the walk-in phase at 10am, only about 20 people turned up.
At the showroom at around 6pm yesterday, around 20 families were viewing the project. A board, which listed the availability of the project's 708 units, showed around 35 per cent of the flats being sold so far.
Some prospective buyers who turned up at the showroom yesterday told MediaCorp that they were there to check if prices have fallen.
Mr Zack Henry, 40, said: "(Centrale 8) is near the MRT and Tampines Mall but the flats are expensive. I might as well go for an Executive Condominium (EC)."
Another potential buyer, who only wanted to be known as Mr Wong, said: "The price is high but it is not a private property. It is a Housing and Development Board (HDB) project ... and there are no other amenities. We like the project because of the location. But if the price remains high, we'll just stay out."
Property analysts said they are surprised at the low take-up rate. They added that the negative publicity about the project's high prices may have affected buyers sentiment.
Dennis Wee Group director Chris Koh said: "The Government's announcements to review the DBSS scheme ... and Sim Lian's high prices could cause some to take a step back and wait and see."
SLP International head of research Nicholas Mak added: "Usually during the first weekend when sales are opened to public, there is an overwhelming response in the showroom."
Mr Mak said that the developer will "have to find out why sales is slow and address the problem". He added: "If sales slow down, it's difficult to regenerate interest in the project." Mr Mak noted that when faced with slow sales, developers could reduce prices and increase the value of the flats by providing finishes, such as marble instead of tiles.
Mr Koh pointed out that if Sim Lian decreased its prices now, those who had already bought the units would be affected.
"It also affects the creditability of the company - so it's not about cutting prices. It is about winning back the confidence of buyers," he added. Ong Dai Lin
After hogging the headlines for the wrong reasons, the first weekend of Centrale 8's (picture) walk-in-and-buy phase got off to a slow start.
The Sim Lian Group, the developer of the Design, Build and Sell Scheme (DBSS) project in Tampines, had earlier drawn flak for its initial prices of up to a record S$880,000 for five-room flats, before confirming the maximum price at S$778,000.
MediaCorp had reported on Saturday that when doors opened for the walk-in phase at 10am, only about 20 people turned up.
At the showroom at around 6pm yesterday, around 20 families were viewing the project. A board, which listed the availability of the project's 708 units, showed around 35 per cent of the flats being sold so far.
Some prospective buyers who turned up at the showroom yesterday told MediaCorp that they were there to check if prices have fallen.
Mr Zack Henry, 40, said: "(Centrale 8) is near the MRT and Tampines Mall but the flats are expensive. I might as well go for an Executive Condominium (EC)."
Another potential buyer, who only wanted to be known as Mr Wong, said: "The price is high but it is not a private property. It is a Housing and Development Board (HDB) project ... and there are no other amenities. We like the project because of the location. But if the price remains high, we'll just stay out."
Property analysts said they are surprised at the low take-up rate. They added that the negative publicity about the project's high prices may have affected buyers sentiment.
Dennis Wee Group director Chris Koh said: "The Government's announcements to review the DBSS scheme ... and Sim Lian's high prices could cause some to take a step back and wait and see."
SLP International head of research Nicholas Mak added: "Usually during the first weekend when sales are opened to public, there is an overwhelming response in the showroom."
Mr Mak said that the developer will "have to find out why sales is slow and address the problem". He added: "If sales slow down, it's difficult to regenerate interest in the project." Mr Mak noted that when faced with slow sales, developers could reduce prices and increase the value of the flats by providing finishes, such as marble instead of tiles.
Mr Koh pointed out that if Sim Lian decreased its prices now, those who had already bought the units would be affected.
"It also affects the creditability of the company - so it's not about cutting prices. It is about winning back the confidence of buyers," he added. Ong Dai Lin
