06:07 AM Jun 22, 2011
Centrale 8 at Tampines - a DBSS by Sim Lian GroupSINGAPORE - Centrale 8's developer has reduced the prices of its Design, Build and Sell Scheme flats (DBSS), possibly "caving in" to public pressure, property analysts told MediaCorp.
The most expensive five-room flat is now S$778,000, down from S$880,000.
While Sim Lian Group reiterated yesterday that its initial prices were only indicative, ERA Asia Pacific associate director Eugene Lim pointed out: "When developers reveal their price range, it's usually quite close. For instance, (the previous DBSS project) Adora Green's selling prices were exactly their indicative prices."
SLP International executive director of research and consultancy Nicholas Mak said: "Like any business, they took the risk - they wanted to see if the market would respond positively to their prices or not."
Sim Lian said last week it the premium cost was due to the project's location in Tampines Regional Centre with mature amenities, and the promixity to Tampines MRT station and the future Downtown Line 3 MRT interchange.
In a press release yesterday, Sim Lian Group chief executive officer Kuik Sin Pin said the new price range was decided based on the resale prices, age and location of HDB flats in the same vicinity, prevailing economic conditions and proximity to transport networks and good public facilities.
ERA's Mr Lim said Sim Lian could have been "genuinely pressured" to adjust the pricing.
He added, "The Minister himself said that if you price it too high, no one will want to buy from you."
However, Suntec Chesterton International head of research and consultancy Colin Tan felt that in all probability, the developer would have offered home buyers a discount to its indicative price range. Now, he said, Sim Lian will be making a smaller profit.
The developer did not say how many applications it received when the deadline closed yesterday.
But Mr Lim reckons that the flats are still "pricey": "Usually, the premium above a resale flat for a DBSS is between S$100,000 to S$150,000."
Analysts pointed out that Tampines is a more popular mature estate compared to Yishun, where the lower-priced Adora Green, which is 96 per cent sold after its February launch, is located.
"Centrale 8 not only has the amenities and conveniences, but offers high rental value - this could add five to 10 per cent more in pricing," said Cushman & Wakefield vice-chairman Donald Han.
Mr Mak had another take: "Sim Lian probably thought it had no competition, as there's not much land in Tampines for the Government to launch BTOs."
Centrale 8 pricing
by Esther Ng
Centrale 8' Indicative Prices
Three-Room $397,000 to $510,000
Four-Room $531,000 to $683,000
Five-Room $685,000 to $880,000
Confirmed Price Range
Three-Room $389,000 to $445,000
Four-Room $511,000 to $592,000
Five-Room $685,000 to $778,000
Via: http://www.todayonline.com/Singapore/EDC110622-0000531/Price-of-Centrale-8-DBSS-flats-lowered
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