Mr Lee Posted December 24, 2011 Posted December 24, 2011 MANILA, Philippines - After slashing prices of some of its condominium units by as much as 40% , SM Development Corp. (SMDC) is targeting P3 billion in sales this December.The huge discount offered by SMDC had sparked fears of an over-supply of high-rise condominiums in the market.Link 1 Link to comment Share on other sites More sharing options...
Forum Support Old55 Posted December 25, 2011 Forum Support Posted December 25, 2011 It's hard to know what to think. In the first part it is said "slashing prices as much as 40%" then later "we sacrifice by selling our units at 60 or 50%".The market in the Cebu area is tightly controlled by a few large corporations so the market doesn't control prices a small group controls prices. How can you cut prices 50%?!?! What does that tell us? Link to comment Share on other sites More sharing options...
Mr Lee Posted December 25, 2011 Author Posted December 25, 2011 (edited) It's hard to know what to think. In the first part it is said "slashing prices as much as 40%" then later "we sacrifice by selling our units at 60 or 50%".The market in the Cebu area is tightly controlled by a few large corporations so the market doesn't control prices a small group controls prices. How can you cut prices 50%?!?! What does that tell us?Cutting prices 40% would mean selling the units at 60% of what they were selling them for, 100 times 40% off is 60%. I believe that is what they mean. :hystery: I do not know what they mean by 50% but if they can cut 40% then they were too overpriced in the first place.Imagine the people who paid 100% and now the people are buying units for 60%, IMHO not very good marketing for such a large, and I believe normally smart company if they are in a good market, but if in a overloaded market, one has to do what one has to do to get rid of the rest of the units. If they had charged the fair price in the first place then the place would probably have sold out and they could have been raising prices instead of discounting them. I have found stubbornness usually prevents most for discounting unless they are forced to.Whatever the case, to me it is starting to show that the economy is in a slowdown, and as you, I and others have been saying for a while now, we do not see how Cebu prices are so high either, so maybe the correction predicted may come to pass. Edited December 25, 2011 by Mr. Lee 1 Link to comment Share on other sites More sharing options...
Genius Posted January 2, 2012 Posted January 2, 2012 Very good news, if the discounts are not illusory from an above normal market rate and not the retail film flammery of increasing the price temporarily, so you can show a large reduction. Link to comment Share on other sites More sharing options...
JJReyes Posted January 2, 2012 Posted January 2, 2012 Other property developers may follow in offering incentives to purchase. The Philippines now is experiencing a real estate glut. The economy is expected to falter in 2012. The good news for Expats is the United States dollar is expected to strengthened vis-a-vis the Philippine peso during the next twelve months. Link to comment Share on other sites More sharing options...
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