Daintree Residence’s sale started on the right note as developers SP Setia sold 50 out of 80 apartment units they had launched during last weekend’s sale. This is interestingly the first site to be sold in the private property market since announcement of the cooling measures.
As per reports the developers were able to achieve average price of $1,710 psf for the units sold last weekend in the 327-unit’s first phase. Majority of the buyers picked two-bedroom units followed by three-bedded properties.
SP Setia’s GM Neo Keng Hoe is happy with the opening as he stated the 63% successful sale as very encouraging. He added that the rest of the units would be launched in phases as they would review the prices and anticipated higher prices for other developments that fall along Downtown Line.
It is interesting to note that Mr Neo had announced price of S$1,800 psf before the launch while the actual rate turned out to be lower. This isn’t to suggest that SP Setia is offering properties at discounted prices and The Creek @ Bukit which is located just next to Daintree sold at S$1,630 psf last year.
Daintree Residence has come up on a site that Malaysia based SP Setia picked up last year in government tender for S$265 million which translated to S$939 psf ppr.
The developer’s decision to hold back units is strategic as they expect the prices to go up in near future. Goodluck Garden condo was picked up in a collective sale for S$1,210 psf earlier in March will come up for sale in the coming months.
Colliers International’s Head of Research (Singapore) Tricia Song isn’t too enthusiastic about upward price movements in the immediate future as she feels the prices aren’t showing upward moment as per Q2 price data.
The new cooling measures are having their effect on the price according to her.
However, she added that Daintree being in a non-competitive region outside the playing grounds of the major developers may see increase in prices with growing demand.
It is interesting to note that the July 6th new property cooling measures took everyone by surprise. They have brought hike in additional buyer’s stamp duty and also have set stringent criteria for loan-to-value limits.
However, they haven’t impacted the market as yet in terms of sales according to realty watchers. Stirling Residences developed by Nanshan Group and Logan Property has sold 50 units at a price of S$1,800 psf the very weekend when the cooling measures were announced.
Mr Neo is also excited about the prospects of Daintree Residence and said that there are regular discussions with potential buyers which is a proof of the enthusiasm in the property.
Given its favourable location close to Beauty World MRT station where no new project has been launched in the last few years he is expecting greater interest in the development.
90% of the buyers at Daintree Residence were Singaporeans and the rest comprised of foreigners and permanent residents.