Developers still selling unsold units from older launches

By Romesh Navaratnarajah:A number of developers are aggressively promoting their unsold units from previous launches; offering buyers with attractive discounts.

Over the weekend, Bukit Sembawang offered 19 units at Paterson Suites, a high-end condo at Paterson Road that was completed in 2010. Most of the homes have been snapped up except for two four-bedroom units on the second and fourth floors.  

In an advertisement carried in The Straits Times, the developer guaranteed a five percent rental yield for four years, or equivalent to S$300,000 yearly (S$25,000 monthly) for a S$6 million apartment. If the rent falls below S$25,000 per month, the remainder 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 release homes at the 301-unit My Manhattan condo (pictured) in Simei. While the project was launched last year, experts believe the high prices (S$1,219 psf) could have chased off buyers.   

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

Nicholas Mak, Head of Research at SLP International Property Consultancy, said it is common for developers to have unsold units a year or more after the launch. As such, it is necessary 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... Now they feel confident enough to give such discounts and that it would attract more sales".  Related Stories:2 residential sites go en bloc

More buyers backing out of property deals

Foreign home buying plunges 78% 

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