IN A daring move displaying its confidence in the property market recovery, Far East Organization is raising the prices of its unsold homes islandwide.
The property company, one of Singapore's biggest developers, is upping the prices of its condominium units and landed properties across both the luxury and mass-market segments.
Its bold decision surprised market watchers as the property recovery has so far been confined to the luxury segment.
Far East is raising prices for both condominiums and landed homes by at least 3 per cent and up to 20 per cent, sources told The Straits Times.
For instance, the price of a three-bedroom home at 99-year leasehold Dunman View condo in Katong rose by $80,000, or almost 10 per cent, to more than $800,000 on Monday.
Some popular Far East landed homes will also cost 10 per cent more, with at least one project set to rise by up to 20 per cent.
Far East could not be contacted for comment yesterday but a check with more than 10 sales offices of its developments yesterday found that all had either upped prices on Monday or were planning to do so over the next week.
The price hikes appear to apply to Far East's projects - some of them under construction - regardless of whether they are more desirable freehold properties in prime districts or 99-year leasehold suburban homes.
Far East will even increase prices of already-completed projects which most developers will try to sell as fast as they can.
Property consultants yesterday said Far East may be testing the strength of a property market recovery that has not yet lifted mass market prices.
If it succeeds, other developers may follow suit, market watchers say.
'The mid-tier and high-end segments have some room for price expansion, but the mass market is still rather price-sensitive,' said Mr Nicholas Mak, director of research and consultancy at Knight Frank. Other Far East projects where prices were upped on Monday include Meadow Lodge in Upper Bukit Timah, a 99-year leasehold condo that was completed last year. Prices of its seven remaining units rose by 3 per cent to about $768,000.
The Straits Times understands that tomorrow, prices of landed projects in Yio Chu Kang such as Florida Park and Banyan Villas will rise by 3 to 5 per cent and up to 20 per cent respectively.
Prices at Bukit Villas in Woodlands will similarly climb by about 10 per cent.
Some property developers have recently raised the prices of their projects to take advantage of the booming luxury home market, but these price hikes have been limited to specific areas, if not individual developments.
Mr Joseph Tan, residential director at property consultancy CB Richard Ellis told The Straits Times that he 'can't recall any such move by a developer in the past' to increase prices for its projects across the board.
He described Far East's move as 'somewhat optimistic' and said it was likely 'in anticipation of increased property values'.
Home prices have been creeping up slowly since 2004, rising 3.8 per cent last year and 3.3 per cent in the first half of this year.
But this has largely been driven by the stellar performance of the high-end home segment - comprising freehold homes in prime areas - while prices of 'mass-market' 99-year leasehold suburban homes have remained flat.
fiochan@sph.com.sg
PRICES of these homes have gone up or are going to be raised soon: Dunman View in Katong Price of a three-bedroom condo unit up by $80,000, or almost 10 per cent, to more than $800,000. Meadow Lodge in Upper Bukit Timah Prices of its seven remaining units rose by 3 per cent to $768,000. Florida Park and Banyan Villas in Yio Chu Kang Prices for landed projects at the former will go up by 3 to 5 per cent tomorrow, while those for homes at the latter will rise by up to 20 per cent. Bukit Villas in Woodlands Prices will climb about 10 per cent. |
