Price cuts at Perfect Ten condo in Bukit Timah raise eyebrows

PRICE cuts are ongoing at the recently-launched luxury condominium Perfect Ten in prime District 10, with some discounts exceeding the 5 per cent offered just last December. This has raised some eyebrows among industry watchers, given the timing and quantum of certain discounts.

When the freehold 230-unit project was put on the market on Dec 19 last year – just 3 days after Singapore’s new property cooling measures kicked in – the developer, Hong Kong-based CK Asset, offered what it described as a “one-time” discount of 5 per cent off the listed prices.

In the roughly 4 months since then, some units have continued to be marketed at reduced, "promotional" net prices. However, the exact size of the discounts has not always been clear, as not all the listed or gross prices were disclosed.

An individual who purchased a unit during the “VIP day” launch on Dec 19 is arguing that discounts larger than 5 per cent have been doled out in recent months, and is thus seeking financial compensation to make up the difference. The Business Times (BT) understands that he has sent a legal letter to the developer.

A few industry observers were also surprised by the timing of the multiple price revisions, implemented so soon after a new launch. The luxury development is expected to obtain its temporary occupation permit in November 2025, CK Asset said in a press statement last November.

The developer did not reply directly to BT’s queries as to whether discounts larger than 5 per cent have been offered and applied since Dec 19, and whether it reduced any listed prices. BT also asked about the reasons behind such adjustments, but the company did not comment specifically on that either.

In its response to BT, a spokesperson of Property Enterprises Development (Singapore), a member of CK Asset, said without elaborating: "It is a common practice in the market to offer occasional promotions of various natures during sales campaigns.”

Were bigger discounts given?

As at Apr 19, the URA Realis caveats database showed 18 units transacted at the Bukit Timah project, including 8 purchased on Dec 19 last year.

For the smallest strata area of 753 sq ft, 4 apartments have been sold thus far, based on the caveats lodged. These include a level 2 unit which fetched S$3,118 psf, and a level 20 unit which sold for S$3,452 psf, both on Dec 19. The other 753 sq ft homes sold were on level 3, which went for S$3,042 psf this Jan 30, and on level 5, scooped up for S$3,118 psf on Feb 6.

In non-landed residential property, apartments on the upper levels typically command higher prices than those on the lower storeys, provided the unit size and stack are the same.

Smaller sizes are also expected to carry lower overall price quantums – albeit not necessarily lower psf prices – than larger ones, all other things being equal.

One might thus assume that a second-storey unit with the smallest area, bought with the 5 per cent discount, would likely be the cheapest in the project if no bigger discounts were given subsequently.

At Perfect Ten, among the 753 sq ft homes, the level 2 unit was more expensive than the level 3 unit, and sold at roughly the same price as the level 5 unit.

As for the slightly larger homes – those at 764 sq ft – a level 10 unit ended up a tad cheaper than those on levels 8 and 9 in the same stack. The level 10 property was purchased in January for S$3,205 psf. That came after the others went for S$3,206 psf on level 8 and S$3,222 psf on level 9, on Dec 19.

That said, the level 7 unit below them was subsequently sold at a lower price of S$3,188 psf in March..

When CK Asset announced the 5 per cent discount back in December, it released the price list for only 10 units across 5 stacks, on levels 2 and 9.

It did not respond to BT’s request for the listed prices and actual discounts of the other transacted units.

According to a promotional brochure, dated Feb 17 and circulated by property agents to potential buyers, a 5.91 per cent discount appeared to be offered for 8 selected “star buy” units, while all other unsold units came with a 3 per cent discount.

The brochure stated both the listed and net prices for the “star buy” properties. For example, a level 12 unit was offered at nearly S$4 million, down from its listed price of about S$4.25 million. This unit was later purchased at roughly S$3.99 million, suggesting a 6.19 per cent discount from the list price in the brochure.

Another chart circulated in early April included 7 “star buy” units, again implying a 5.91 per cent discount.

The April brochure gave the listed prices for close to 30 smaller apartments, with an area of 753 to 797 sq ft. For the sake of illustration, BT estimated the price increase that came with each higher floor, for units in the same stack and with the same size.

Based on the available listed prices of 28 smaller units in the April brochure, BT’s calculations indicated that an average of S$13,997 appeared to be added to the asking price of the 753 to 797 sq ft units with each higher floor. The per-storey increase ranged from S$13,000 to S$15,000.

If using the more conservative estimate of S$13,000 per floor, and adding it to the listed price of S$2.47 million for the 753 sq ft, level 2 unit, the listed price for level 3 in the same stack may be a tad under S$2.49 million while that of the level 5 unit may be almost S$2.51 million. These work out to discounts of 6.42 per cent and 6.37 per cent to arrive at the units’ transaction prices, if BT’s calculations are anything to go by.

To be sure, this is a simplistic estimation of how listed prices may vary with the unit’s height. Developers can and will often consider other factors in determining the price increases, even within the same stack.

It should also be noted that the April brochure included 51 units with a 3 per cent discount. For at least 5 of these units, that is a smaller discount than the 5 per cent publicised for them on Dec 19.