The property boom has still not lifted luxury home prices back to their 2007 levels, although units in up market projects are attracting buyers.
It is far from a bargain-basement situation but developers are having to keep their expectations in check, and having to offer attractive prices.
Take Bukit Sembawang's Paterson Suites, which was completed in the third quarter. There were 41 new units sold at a median price of $2,661 per sq ft (psf) last month.
In July a 2,164 sq ft flat went for $7 million - or $3,232 psf.
Yet in July 2007, five units were sold at a median price of $3,369 psf.
The Straits Times understands that 38 of the 41 units were sold to a handful of private investors, mostly foreigners. Each bought several units and received a slight discount.
Three units of Hasetrale Holdings' 8 Napier in Napier Road fetched a median price of $3,348 psf last month. In 2007, some flats went at close to $4,000 psf.
In 2007, Macquarie Global Property Advisors paid $136 million for 19 units at 8 Napier at an average price of $3,550 psf.
Experts said luxury home prices are about 5 per cent shy of their 2007 peak.
Colliers International's director of research and advisory, Ms Tay Huey Ying, said that if prices continue to strengthen, even at a moderate pace, developers will be encouraged to gradually off load more units.
'But this will probably not be on a massive scale because developers are conscious of the strength of the high-end market and are likely to space out their launches evenly and in small volumes,' she added.
Some investors have also opted to buy landed homes instead, as the limited supply of such property means the sector is more resilient to volatility.
Experts added that while it is still early days, there could be increasing pressure on developers to lower prices should the high-end segment continue to languish below its peak - both in terms of price and volume.
Jones Lang LaSalle's head of research for South-east Asia, Dr Chua Yang Liang, said smaller developers with reduced holding power and completed projects on hand would be most affected.
Larger developers could always lease out unsold units, he added.
Urban Redevelopment Authority data for private home sales last month showed that 213 homes in the core city centre region were sold, out of 338 launched - the highest number launched for the segment since March.
This brought total home sales in the city centre this year to 3,741 out of 3,867 units launched as of the end of last month.
These numbers are in line with last year's 3,825 units for the entire year but short of 2007's 5,454 units sold.
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