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Two Developments Relaunched At Fire Sale Prices This Year Alone
Most would associate a fire sale with financially distressed companies, inferior product quality or economic woes. However these were not the main contributors to the 2 recent developments that offered up to 40% in discounts off their initial launch prices. It is due to timing.
Cuscaden Reserve relaunched at prices from $2,900psf and gets ABSD deadline extension
Cuscaden Reserve was among a number of private residential projects nearing a critical additional buyer’s stamp duty (ABSD) deadline to sell all their units in 2023 or be hit with hefty stamp duty penalties for missing the deadline.
Hence, their ABSD penalty for not selling all the units within the mandated sales period is likely to be 15 per cent of the land acquisition cost, or about S$61.5 million, according to JLL.
The revised pricing is about 20 per cent lower than the average price of about S$3,600 psf that the 12 units have sold for since the Orchard area condo was launched in September 2019.
The 192-unit project, which obtained its temporary occupation permit in August 2023, currently has 95 units unsold as at 15 April 2024.
Timing Issue Amidst A Bullish Market
The developers, a consortium comprising SC Global, Far East Consortium International, New World Development was awarded the tender for the land at a record price of S$2,377 psf per plot ratio on 17 May 2018. There were 9 bids in total placed for this land plot and the SC Global consortium’s bid was $30.6 million higher than the second placed bidder.
The estimated breakeven price was $3,204 psf ppr. The development was launched for sale in September 2019 which was a few months away from the height of the COVID-19 pandemic, which effectively shut all borders.
Luxury homes in the Core Central Region are typically targeted at foreign purchasers. China had only reopened its borders in 2023, some 3 years after the pandemic. To exacerbate the issue, Singapore doubled the ABSD rate for foreign purchases of residential properties to 60%.
Is The Relaunched Price Worth It?
The developers have little choice but to reduce selling prices to target local buyers. Their aim is to cut loss and clear off the units before the the threat from a future project on an adjacent Government Land Sales plot in Orchard Boulevard starts its sales. Currently they have cleared almost half of their unsold stock.
The selling price of $2,900 psf to $3,000 psf in the Tanglin vicinity is attractive when compared to Grand Dunman, a RCR development where some units have transacted at close to $2,900 psf. Buyers will get to see the completed product at Cuscaden Reserve and living in the prime city area is an association to a higher social status and lifestyle.
If you have been waiting to make a move into the city centre, this will be an opportune time as a similar product from luxury developer SC Global is unlikely to materialise at least for the next few years.
However if profitability is always lingering in your mind, it might be better to consider other projects.
The Residences at W Singapore Sentosa Cove relaunched at prices from $1,648 psf




Cityview Place Holdings, an associate company of listed property City Developments Ltd (CDL), is releasing 58 of the remaining 203 units it still owns at The Residences at W Singapore Sentosa Cove for sale.
Located along Ocean Way in Sentosa Cove, the low-rise luxury condo has 228 units, with a mix of two-, three- and four-bedrooms. The development was completed in 2011 and has a 99-year lease from 2006. Hence, it has a remaining lease of 81 years.
Prices of two-bedroom units of 1,227 sq ft will start from $2.118 million ($1,726 psf). The three-bedroom units, from 1,625 sq ft, will have prices upwards of $2.678 million ($1,648 psf), and four-bedroom units, from 2,067 sq ft, will be north of $3.488 million ($1,687 psf).
Pricing Issue
Is The Relaunched Price Worth It?
The starting monthly maintenance fee of $1,300 can be a put-off to some, but this is of course inclusive of many small perks befitting of a luxurious lifestyle.
In the whole of Sentosa Cove, there are only 10 luxury condos with 1,766 units in total with no further new residential supply made available yet.
Living in Sentosa Cove will appeal to owner-occupiers especially when the prices are on par with resale OCR condos. There is a certain lifestyle element that cannot be replicated in the main island especially in the OCR. This does not seem like a fire sale price but more of a palatable entry price into the exclusive lifestyle enclave.
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