Here is an extract from The Business Times. Interesting concept DPS sellers price competing with the developers on the same project. I wonder if we will see a developers agent and a DPS sellers agent holding a reverse auction out the front of a property and bidding the price down until someone from the crowd buys?
Developers ponder tricky math before new launches
Posted on July 7, 2008 by lushhomeonline
The decision on whether to launch a project now is a tricky one. A host of factors have to be weighed - not just pricing, location and the product, but assessing the depth of demand in the particular neighbourhood or micro-market where a condo is located, how many projects have been launched in the area over the past few years, and even the buyer profile in earlier projects.
The ability to price projects attractively - from 7 to 25 per cent lower than market expectations 12 months ago - has been a critical factor in drawing buyers at recent launches.
An increasingly important factor is the prices at which earlier projects in the area had been sold in the past couple of years. Given the run-up in prices, some buyers in earlier projects may unload their units at prices below what the developer of the latest project in the area may be gunning for.
In fact, in at least one project in the Newton area, the developer is said to have started facing competition from earlier buyers in the same condo seeking to unload their units.
Keppel Land is still marketing the remaining units at Park Infinia at Wee Nam and its asking price is understood to be $1,400 to $1,800 psf. Earlier buyers in the same project are offering their units just a tad lower.
