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Hullabaloo causes price slash at Centrale 8
Developer Sim Lian cut the price range of its DBSS flats in the project by up to $102,000 per unit.
The adjusted pricing is said to be now more in line with the benchmarks set in previous Design, Build and Sell Scheme launches.
DMG research noted:
| Following a public uproar over an indicative $880,000 price tag for the priciest five-room units at Centrale 8, developer Sim Lian (Unrated) has slashed the price range of its Design, Build and Sell Scheme (DBSS) flats in the project by up to $102,000 per unit. Pricing for three-room units now cost up to $445,000, down from $510,000 while four-room ones now cost a maximum of $592,000, down from $683,000. Five-room units will now cost up to $778,000, or $663 psf. With the cuts, pricing of the DBSS flats are now more in line with the benchmarks set in previous DBSS launches. For instance, the maximum for Peak@Toa Payoh and City View@Boon Keng was around $720,000 for five-room flats while Bishan's Natura Loft saw a peak pricing of $739,000. We reckon at the revised pricing, Sim Lian’s pretax margins will still be quite decent at over 20%, using an average ASP of $600 psf and a breakeven of $450 psf. Sim Lian’s land cost for the project is around $261 psf ppr. With the public outcry over pricing for DBSS units, we believe developers will be more selective in participating in future DBSS tenders where selling prices tend to be highly scrutinised by the public even though pricing flexibility lies with the developer. |
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