River Valley condo Luma relaunches with prices halved - November 14, 2008
Prices have been slashed by half at Luma, a 75-unit freehold luxury
condominium at River Valley Grove.
Relaunching this weekend, units at Luma are being offered at $1,450 per
square foot, down almost 50 per cent from $2,800 psf when it was first
launched last year.
About 10 units had been sold, mainly in Dubai and Hong Kong.
SISV-Realink data shows two units on the 25th floor changed hands at $2,837
psf and $2,586 psf in April this year.
These prices were already much lower than those for two units on the 20th
and 26th floors, which went for $3,349 psf and $3,291 psf in August last
year.
At the time, some speculated that prices could soon reach $4,000 psf.
Luma (which will be completed in 2011) has three units on each floor,
ranging from 743 sq feet to 1,173 sq feet. The developer behind the project
is the mid-sized Novelty Group, which is also in the department store
business. Luma sits on an en-bloc site at St Thomas Walk which Novelty
bought in 2006 for $76.5 million, or about $810 psf of potential gross floor
area.
The relaunch of Luma is believed to be the first among luxury condominiums
as other developers are holding back, given the weak market.
Nicholas Mak, director of research and consultancy at Knight Frank, said
more of the smaller developers could be relaunching at lower prices.
‘The bigger ones are discreetly offering soft discounts, such as lifestyle
vouchers,’ he said.
‘I think the chief aim is to move units, to increase sales. They’ve probably
done their sums - they expect to do a level of sales to achieve breakeven
point, which will lower their borrowings and feel more comfortable,’ Mr Mak
added.
Banks are probably repricing loans, and some developers that have revolving
facilities or variable- rate loans may feel the pinch.
‘More smaller developers will be doing this if the economic situation
worsens,’ said Mr Mak.
The Novelty Group also bought White House Park Apartments in Stevens Road
for $22 million from Asia General Holdings. It also has developments in
Pasir Panjang, Geylang, Yio Chu Kang and Pasir Ris.
Post By: Jerry Lim Hp: +65 90275537 Email: jerry@assetomgt.com
Joseph Goh Hp: +65 81811129 Email: joseph@assetomgt.com
Sales Office Hotline: +65 6100 0023
Website:www.assetomgt.com
Huttons Asia Pte Ltd
Real Estate Investments
Posted on November 15th, 2008 under Singapore News |
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