The Straits Times
February 2, 2013
CAPITALAND has slashed prices at another of its residential projects, this time The Interlace in Alexandra Road.
The Straits Times understands that the developer will offer an additional price discount of 10 per cent of its list price for sales starting from today.
This brings the total discount to 20 per cent, as the company had already been offering a 10 per cent discount previously.
Of the 302 units left unsold at the mega 1,040-unit project as of the end of last year, most are three-bedroom, three-plus-study and four-bedroom apartments.
Prices for typical three-bedroom units of between 1,593 sq ft and 1,905 sq ft, for instance, are now expected to range from about $1.9 million to $2.3 million - or between about $1,100 per sq ft (psf) and $1,300 psf.
The prices for such units were about $2.1 million to $2.5 million before the additional discount.
Designed by renowned German architect Ole Scheeren, The Interlace was launched for sale in 2009 on the site of the former Gillman Heights.
Earlier last month, CapitaLand also offered discounts of up to 15 per cent for the mega 1,715-unit d'Leedon in the former Farrer Court estate. It has seen only moderate sales since its 2010 launch.
It has sold 142 units since the discount was introduced on Jan 19, with total sales at the project said to have hit about 1,000 units now.
When asked if the discounts were introduced because of the cooling measures, a CapitaLand spokesman said: "It is quite common for us to run promotional programmes every now and then for certain units within a development to incentivise buyers."
Experts say CapitaLand offered price cuts mainly for its mega projects of more than 1,000 units to move unsold stock.
The Interlace, for instance, is also expected to be completed this year, and the company might be trying to avoid the cost of holding completed but unsold units.
The land cost for the project is also low, which gives the developer a sufficient buffer to lower prices, the experts add.
Other developers have been deploying similar tactics - slashing prices and offering other sweeteners - in response to the new rules unveiled on Jan 11.
Far East Organization, for example, is offering discounts of up to 4 per cent for some its residential projects such as eCO in Bedok and Seastrand in Pasir Ris.
Frasers Centrepoint also threw in a discount of 5 per cent to 7 per cent for its recent launch Q Bay at Tampines - the first residential project pushed out after the measures - to cushion the impact of the additional buyer's stamp duty.
However, OrangeTee managing director Steven Tan said most developers are likely to keep prices for existing projects firm, as the replacement cost is high due to the high price of land.
"But new launches might be less aggressive in their pricing so in a sense the market will stabilise," he added.
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