Private property still expensive due to developers' healthy balance sheets

They to not to lower prices.

Private property prices in the primary market remain elevated because of developers’ healthy balance sheets.

According to DTZ, while price declines were apparent in the secondary market, the median prices of units sold directly by developers appeared to hold up better over the course of 2014.

For instance, median prices of units sold in the fourth quarter had only fallen by up to 2.0% at some projects launched earlier in the year, such as The Crest and Coco Palms.

At the same time, median prices of units sold at Commonwealth Towers, The Santorini and Lakeville, which launched in the first half of 2014, even increased marginally by the end of the year.

“Some developers are reluctant to lower prices during phased launches and instead offer rebates and other incentives to lure potential buyers. Although some developers have adjusted prices at certain projects to
move units, they have generally not lowered prices to attract buyers, given that most still have healthy balance sheets,” stated DTZ.