It is the survival of the fittest for developers; they have to dig very deep in order to court prospective buyers. Imagine a sales index of over 300 in the first week cheapening down to just 15. The competition is getting stronger with each passing week.
For those at the helm of affairs in gem residences, these are not healthy times for business. At the close of sales in the first weekend, it was Eldorado for them having sold 300 of their new launch Condo units at its VIP at an average price of $1426 psf. There was a difficult twist when sales went down to just 15.
It is a tale of different kettles of tea for these developers. For City Fringe, it was a success story so far so good in their condo for sale. Their projects priced below $1,500 psf are being welcomed by prospective buyers.
On the hills of these, there is a glaring oversupply in Queenstown and Bukit Merah. There is the danger of oversupply which will in turn lead to a two tier market.
All the well located projects are in stiff competition to outdo each other in the sales index. It is now left to the policy formulators of each development company to fashion out a price regime that will entice the buyers into buying into these units.
Apart from new launches courting prospective buyers, previously launched projects are also putting up a stiff fight to make a foray in sales. In all these, City Fringe has been able to keep the tempo.
The demand for City Fringe has been on the steady rise. Why are they been able to tower above their competitors such as Sims Urban Oasis, Sturdee Residences, Principal Garden, Cityscape Singpore, and Highline Residences in times like this when buyers have suddenly become the beautiful bride? The magic is appropriate pricing regime that city fringe is employing.
Initially, GEM made strong sales due to the fact that there were few Condo for sale at that point in time. But with the influx of more launches and the launches so close to each other, the pendulum has swung in another direction.
The sales will come in only for the developing companies that have what it takes to pull out the magic that will make potential buyers fall for them. This coming in quick succession and very close to each other constitutes a healthy competition.
However, these numerous launches that have led to this competition in the real estate sector have led to oversupply in some areas such as Queenstown and Bukit Merah. In these places, some units have been left unsold. Other units that will be affected include The Venue condos.
This current competitive trend is good for the buyer. The developers on their part have to think appropriate pricing to have an edge in this competitive market.