Business Times - 18 April 2008
"In cutting prices by 3-5 per cent at three existing projects and achieving encouraging sales, property giant Far East Organisation may have set the cat among the pigeons.
Other developers must now ask themselves whether to embrace this strategy. Of course, the bigger ones have the financial muscle to hold back launches and sales for months and don't need to chop prices to entice buyers in the face of weaker market sentiment.
But there are opportunity costs involved in letting projects linger on the market and in holding on to sites -especially ones with 99-year leasehold - instead of launching the project.
.Other developers must now ask themselves whether to embrace this strategy. Of course, the bigger ones have the financial muscle to hold back launches and sales for months and don't need to chop prices to entice buyers in the face of weaker market sentiment.
But there are opportunity costs involved in letting projects linger on the market and in holding on to sites -especially ones with 99-year leasehold - instead of launching the project.
.
Still the months ahead may prove fruitful for bargain hunters"
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