Developers negotiate price cuts in Singapore and China

http://www.property-report.com/developers-negotiate-price-cuts-in-singapore-and-china-35219

Ying Yi Chua for The Wall Street Journal

Chinese and Singaporean developers are contemplating bigger price cuts in an effort to attract more homebuyers as domestic residential markets start to cool down.

In China, where home sales reached a recording-setting USD1.31 trillion last year, there is an increasing concern from developers to meet sales targets as many companies only achieved less than 30 percent of their sales projections to date, according to Reuters.

“The market is very weak now, price cuts and promotions are very normal,” Simon Fung, chief financial officer of Greentown China, told Reuters. Fung’s company last week distributed cash coupons to existing clients who are looking to buy a new home.

A number of China-based developers have also started offering free renovation or free parking space packages to lure new investors in a move that is expected to continue throughout the third quarter.

The secondary home market in Hong Kong, which reported a sluggish first quarter in the luxury residential segment, was also slow-moving last week, The Hong Kong Standard reported. Several developers slashed prices over the weekend to attract more buyers, including Sino Land, which drew some 15,000 enquiring buyers in its Mayfair by the Sea I development, where units are being sold at about 20 percent lower than market rates.

In Singapore, where sales of luxury condominiums dropped by more than 60 percent in Q1 2014, year-on-year, based on data provided by property consultancy DTZ, some developers are still undecided if they would be willing to offer discounts or special promotions.

“Buyers are becoming more discerning with their purchases and are quite price-sensitive,” Chua Yang Liang, head of research at JLL Singapore, told The Wall Street Journal. A spokesperson at CapitaLand declined to comment on specific price changes in its Zaha Hadid Architects-designed d’Leedon development, whilst GuocoLand announced that there had been no price cuts in its Soo K. Chan-designed Leedon Residence property at this time.

Meanwhile, one high-end developer, Ho Bee Land, reportedly decided to rent out some units in its Sentosa development rather than pursue selling them in order to maximise profit in this investment climate, CIMB Bank analyst Tan Xuan was quoted in Singapore Business Review last April.

– See more at: http://www.property-report.com/developers-negotiate-price-cuts-in-singapore-and-china-35219#sthash.r3qmzHJO.dpuf

Ying Yi Chua for The Wall Street Journal

Chinese and Singaporean developers are contemplating bigger price cuts in an effort to attract more homebuyers as domestic residential markets start to cool down.

In China, where home sales reached a recording-setting USD1.31 trillion last year, there is an increasing concern from developers to meet sales targets as many companies only achieved less than 30 percent of their sales projections to date, according to Reuters.

“The market is very weak now, price cuts and promotions are very normal,” Simon Fung, chief financial officer of Greentown China, told Reuters. Fung’s company last week distributed cash coupons to existing clients who are looking to buy a new home.

A number of China-based developers have also started offering free renovation or free parking space packages to lure new investors in a move that is expected to continue throughout the third quarter.

The secondary home market in Hong Kong, which reported a sluggish first quarter in the luxury residential segment, was also slow-moving last week, The Hong Kong Standard reported. Several developers slashed prices over the weekend to attract more buyers, including Sino Land, which drew some 15,000 enquiring buyers in its Mayfair by the Sea I development, where units are being sold at about 20 percent lower than market rates.

In Singapore, where sales of luxury condominiums dropped by more than 60 percent in Q1 2014, year-on-year, based on data provided by property consultancy DTZ, some developers are still undecided if they would be willing to offer discounts or special promotions.

“Buyers are becoming more discerning with their purchases and are quite price-sensitive,” Chua Yang Liang, head of research at JLL Singapore, told The Wall Street Journal. A spokesperson at CapitaLand declined to comment on specific price changes in its Zaha Hadid Architects-designed d’Leedon development, whilst GuocoLand announced that there had been no price cuts in its Soo K. Chan-designed Leedon Residence property at this time.

Meanwhile, one high-end developer, Ho Bee Land, reportedly decided to rent out some units in its Sentosa development rather than pursue selling them in order to maximise profit in this investment climate, CIMB Bank analyst Tan Xuan was quoted in Singapore Business Review last April.

– See more at: http://www.property-report.com/developers-negotiate-price-cuts-in-singapore-and-china-35219#sthash.r3qmzHJO.dpuf

Ying Yi Chua for The Wall Street Journal

Chinese and Singaporean developers are contemplating bigger price cuts in an effort to attract more homebuyers as domestic residential markets start to cool down.

In China, where home sales reached a recording-setting USD1.31 trillion last year, there is an increasing concern from developers to meet sales targets as many companies only achieved less than 30 percent of their sales projections to date, according to Reuters.

“The market is very weak now, price cuts and promotions are very normal,” Simon Fung, chief financial officer of Greentown China, told Reuters. Fung’s company last week distributed cash coupons to existing clients who are looking to buy a new home.

A number of China-based developers have also started offering free renovation or free parking space packages to lure new investors in a move that is expected to continue throughout the third quarter.

The secondary home market in Hong Kong, which reported a sluggish first quarter in the luxury residential segment, was also slow-moving last week, The Hong Kong Standard reported. Several developers slashed prices over the weekend to attract more buyers, including Sino Land, which drew some 15,000 enquiring buyers in its Mayfair by the Sea I development, where units are being sold at about 20 percent lower than market rates.

In Singapore, where sales of luxury condominiums dropped by more than 60 percent in Q1 2014, year-on-year, based on data provided by property consultancy DTZ, some developers are still undecided if they would be willing to offer discounts or special promotions.

“Buyers are becoming more discerning with their purchases and are quite price-sensitive,” Chua Yang Liang, head of research at JLL Singapore, told The Wall Street Journal. A spokesperson at CapitaLand declined to comment on specific price changes in its Zaha Hadid Architects-designed d’Leedon development, whilst GuocoLand announced that there had been no price cuts in its Soo K. Chan-designed Leedon Residence property at this time.

Meanwhile, one high-end developer, Ho Bee Land, reportedly decided to rent out some units in its Sentosa development rather than pursue selling them in order to maximise profit in this investment climate, CIMB Bank analyst Tan Xuan was quoted in Singapore Business Review last April.

– See more at: http://www.property-report.com/developers-negotiate-price-cuts-in-singapore-and-china-35219#sthash.r3qmzHJO.dpuf

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