Since the official launch of The Florence Residences over the weekend on March 2nd, 2019, it sold only 54 units. This represented 3.8% of total units of 1,410 being sold at this first-weekend launch. The developer's version of the sales results is that close to 30% of units were sold reason being that they only released 200 units. The average psf pricing is S$1,450 psf.
Seems that sales results are not that ideal due to excess supply of other units launched from competitors. Riverfront Residences, Affinity at Serangoon and Garden Residences nearby also have many unsold units. Prospective buyers thus have plenty of choices in the current market. Another possible factor is what I think is the very high launched price of S$1,450psf. At S$1,450psf, this is even higher than Kovan Residences and Kovan Regency which have already TOP and are in better locations such as closer proximity to Kovan MRT station and other basic amenities.
Under the ABSD rules, URA gave developers 5 years to complete a residential project and to sell all units else they must pay the ABSD set at 15% of the site's purchase price. For such mega projects, the effect of the ABSD from non-compliance will be severe. Hence we may see the offering of further discounts or renovation vouchers by the developer in order to attract buyers and move units.
P.S: Please see my previous review of Florence Residences here.
Thanks for the update. The developers can always use DPS to deal with the ABSD in the event if they are unable to sell by the deadline. This has happened with many of the projects e.g. OUE Twin Peaks, Fulcrum etc. However, methinks the authorities are aware of this and they may find the right time to announce the measures. If my hunch is correct, the time to deal with the above may be towards the end of 2019 or from 2020 onwards. Stay tuned
ReplyDeleteThat is very smart of the developers to use such loopholes. Hope govt authorities closed up the gap fast so as to level the playing field. It will be good to have more discounts for buyers.
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