Desperate developers forced to cut prices to lure price-sensitive homebuyers

Prices slashed by 11%-16%.

Developers are resorting to discounts to woo price-sensitive buyers as revealed in April’s home sales data. According to Barclays, in April, CapitaLand relaunched its 509-unit Sky Habitat at prices 11%-16% lower than its initial launch in April 2012. They sold 130 units in April, which brings total sales to 312 units out of 509 units, or 61%. According to The Straits Times, another project, The Panorama, will be relaunched at S$1,100-1,340psf, up to 14% lower than its January 2014 launch prices of S$1,234-1,591psf. Luxury home sales remain anaemic with the highest-priced unit at S$2,592psf. We estimate some 14 units were returned in April, lower than the 38 units in March.