We can all recall that one moment when we discovered a great bargain and took advantage of it, whether it was for a gadget that went for sale or any valuables you wanted to have. But when it comes in obtaining properties, how should we determine a good bargain?
Recently, CapitaLand rolled out their stay-then-pay scheme with a 15% discount for D’Leedon and The Interlace. Bukit Sembawang also offered a 10% to 13% discount for its Skyline Residences development. Earlier this year, Wheelock Properties introduced ABSD Assistance Package that provided buyers a 15% discount and a 15% ABSD rebate for selected units at Ardmore Three.
But OUE Twin Peaks is probably the most notable project, being the first development to bring back the DPS (Deferred Payment Scheme).
It has been put to the test to uncover some other deals. And to find the genuine deals, as they looked at new condos that were discounted from its original launch and new condos that were selling close to their cost-price.
In the analysis on those projects with their heavy discounting, they looked up at the average psf of their transacted units before versus those in the first three months of launch.
Some of what they’ve found includes Floraville. It is a 50-unit apartment at Ang Mo Kio with a 635 sq ft unit on the second level that was transacted at S$1,316 psf last May 2016 versus S$1,470 psf for a same size and transaction on the 3rd level last August 2013. This translates to a 10% discount.
Also from the list are Sophia Hills and The Trilinq that are two projects with more than 400 remaining units. In July 2016, this 463 sq ft unit at Sophia Hills was transacted at 7% discount compared to a same size and unit in December 2014, despite being one floor higher. The Trilinq is also cutting prices. Transactions lodged indicated an average discount of 5% to 10%.
Discounting is just one of the ways for property buyers to identify good bargains. Understanding the cost and margins allow investors to make better decisions.