Q Bay Residences at Tampines is the first private residential project to be launched since the latest round of property cooling measures kicked in last weekend.
To attract buyers, the developer is offering discounts of up to 22%.
Market experts said Q Bay Residences will be a test of home buyers' appetite for new developments
The 630-unit project, which is a joint venture by Frasers Centrepoint, Far East Organization and Sekisui House.
It will be launched at an average selling price of $985psf after all discounts this Saturday.
This is below the price of most other new suburban launches out in the market for more than $1,000psf.
The developers of Q Bay Residences said about 550 to 600 buyers put in cheques for pre-booking but about 100 withdrew after the cooling measures were announced.
The developer said many are likely to be third and fourth-time property buyers but they are hoping that the project's location in Tampines will entice buyers.
Q Bay Residences is the first private condominium project to be launched in Tampines in the last two years.
Cheang Kok Kheong, chief executive officer of development & property at Frasers Centrepoint Limited, said: "In Tampines, there has not been many condominiums over the last eight years. There is sort of a pent up demand, people that have been upgrading, have to move on to places like Woodlands and Punggol. But now, the people who own HDB flats are able to continue living in Tampines at Q Bay."
Meanwhile, analysts noted that developers should now be targeting first-time property buyers and pricing is key.
Chris Koh, director of Chris International, said: "It's good that they didn't cross the $1,000psf barrier mark, because if they do, it may scare many people off. By keeping it below $1,000psf, it looks more attractive.
"There's very little comparison because we don't have many developments in that area, but we also know of developments in suburban areas, 99 year leases, that sell at $1,200 psf. On top of that, it's the discount that will make people bite. We're talking about a 15% and an absorption of the Additional Buyer Stamp Duty up to seven per cent."
Experts said the Q Bay Residences project will be a test bed for the market.
Developers are expected to continue with their launches if the sales volumes for the project is healthy.
Q Bay Residences is expected to be completed in May 2017.
Source: Channel News Asia