As the property cycle could be heading towards its low point, property developers are eager to find ways to let go of remaining units in order to recoup losses or earn whatever profits are left.
Some have taken to offering discounts or freebies, whilst others have are even offering bulk sales of units at lower prices. Buyers are now more cautious about their purchases and with lending limits being restricted, many are now unable to afford additional property purchases. Most of these would be the middle to upper-middle classes who eye small private apartment units as potential for rental revenues. But as rental demand dips, they may think twice.
21 units of the 36-unit condominium, Newton Imperial has been put up for bulk sale recently for possibly between $65 to $72 million. Only 15 units of the Great Newton Properties owned condominium development has been sold since its completion in 2011, most of which are to foreigners. The Newton and Novena area is known to be popular with expatriates and was once in hot demand as its city fringe location made its properties highly valuable. Most of the apartments in Newton Imperial are three-bedroom units.
Though bulk sales are a risky investment, there might still be a chance of profits, especially if the units are designed to suit specific tastes and are in the right location. Rental of private apartment units in Newton are at an average of $8, 000 psf. Units at the Newton Imperial were previously sold at approximately $1, 880 psf. Nearby, other private establishments such as L’Viv and 26 Newton are selling units at $2, 100 to $2,600 psf.
What lies in the future of private properties? Is the market headed towards a downward spiral and at what speed?