A new Executive Condominium (EC) project in Jurong West, the Westwood Residences, will be open for booking with prices up to 6% cheaper than a nearby EC project launched 6 months ago in November 2014. The Westwood Residences have an indicative price of S$800 per square foot (psf) compared to its newly launched neighbour, the Lake Life EC, which started with S$850 psf last year.
Mr Francis Koh, group CEO of one of the Westwood Residences’s developers, Koh Brothers Group:
“We have to consider the market. When compared to the nearby executive condo, what will buyers think of our condo? So we have to price it very competitively.”
According to the latest statistics by Singapore Real Estate Exchange (SRX), EC units in non-central locations like Jurong West see falling rental by as much as 11.2% as compared with its peak in January 2013. Rental volume has also fallen by 11.9% between March and April this year.
According to Bloomberg, listed property firms in Singapore faced a combined total debt of S$23.5 billion that is due on 30th June 2015. As the key Singapore Interbank Offered Rate breached its 1% mark in March this year, mortgage interest rate in Singapore will likely rise resulting in a double whammy to condominium developers in Singapore. This perhaps best explains why Westwood Residences is going at a 6% discount.
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