Developers are lowering launch prices of new projects as the Total Debt Servicing Ratio (TDSR) begins to bite, media reports said.
Among the projects affected is UOL and Singapore Land's Thomson Three condo (pictured) in Bright Hill Drive.
“Without TDSR, we could easily have priced this project at S$1,500 psf on average, or even higher. We now expect to price it at a more realistic level, at S$1,350-S1,400 psf,” noted Liam Wee Sin, President (property) at UOL.
Although the 445-unit project opened its showflat last weekend, sales bookings will only start next Friday, on 20 September.
Another development that is seeing a downward adjustment in prices is The Skywoods in the Dairy Farm area.
Notably, the developers behind the 420-unit Skywoods “were looking at nearly S$1,300 psf on average pre-TDSR but we'll now release it at S$1,250 psf”, said TA Corporation's Group CEO Neo Tiam Boon. It is developing the project with King Wan Corporation, Far East Distillers and Hock Lian Seng Holdings.
“The issue today is not that there are no buyers. There are a lot of interested people who want to buy, but they could not get a loan...Conservatively, I estimate possibly one-third of those who saw our showflat couldn't secure a bank loan,” he noted.
Meanwhile, market watchers are looking closely at The Glades in Tanah Merah, to see how Keppel Land will adjust to the new framework. Agents had previously given average price indications of about S$1,400 to S$1,600 psf for the project.
“May be Keppel Land will price Glades a tad below S$1,500 psf,” said a property agent, considering that nearby Urban Vista achieved a median price of S$1,503 psf in March.
The developer declined to comment on the matter.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email firstname.lastname@example.org