Developers all out to woo buyers
The Star 2/5/2005
Property Talk: A weekly column by S.C. Cheah
IT must be every developer’s dream to have people gate-crashing or camping
outside their sales office just like the recent report about people
queuing for five days to buy houses in Kemuning Utama.
However, such incidences be they genuine or part of a marketing ploy to
make people jump onto the band wagon are more the exception than the rule
as it is still a buyers' market and purchasers are spoilt for choices.
Competition is so keen these days especially in the Klang Valley that all
sorts of free gifts, discounts, incentives and sales gimmicks are thrown
in to push sales. Despite all the goodies, some developments are still not
fully sold.
Some projects have been re-launched again and again until the houses have
been completed but the developer would say that they wanted to build first
and sell later. There are also abandoned projects that had been revived
more than twice under different players and concepts but some of their
sales are sluggish due partly to lack of public confidence.
The fact is things are not as rosy as they seemed although projects in
“hot” locations are still doing well. It’s not because people are not
buying.
Buyers of Lavender Heights bunglows in Senawang, Negri Sembilan, are
offered a Property Reward On Financial Investment Tenure scheme
On the contrary buying a property has never been easier what with
developers building nice show houses and sales galleries to exhibit their
products to the fullest. There are great offers from developers and banks
alike.
Sales charts decked with red pins often display the “fantastic” sales. You
are told that there are “very limited” units left. However, when you
demand for a particular unit that is purportedly “sold,” the sales
personnel may later inform you that a purchaser had dropped out as he had
failed to qualify for a loan so would you like to grab it?
Although the freebie mentality has been very much entrenched in the
Malaysian psyche and has become a kind of “buying culture”, the serious
and astute purchaser still looks beyond short-term gain. They bought
because they knew the product was good and has value for money.
As Titijaya Group senior sales and marketing general manager Joyce Sin
said: “Our products can sell by themselves but we give discounts to reward
our loyal purchasers, especially those who have registered their interest
with us from the start.”
Indeed, its proposed Tiaraville serviced suites in Subang Jaya had been
well received, with 95% of the Block A sold in three weeks. During the
recent Mapex 2005, the group offered discounts up to RM5,000 per unit for
the new Tiaraville block and up to RM50,000 discounts for purchasers of
its three-storey shop offices in Klang Sentral. It managed to close quite
a number of sales.
The MK Land Group also threw in some attractive offers for buyers of its
Milan@Damansara Perdana designer condominium. It gave a special 10%
discount and another Mapex special discount of 5%. Bumiputra purchasers
get to enjoy a further 7% discount. Also waived were the fees for sales &
purchase agreement (SPA) and loan documentation. There is also one free
car park bay.
Those who bought The Boulevard condominium units in Subang Jaya during
Mapex 2005 were also given a RM8,000 rebate.
Purchasers of link houses in Kota Warisan also got discounts ranging from
RM3,000 to RM10,000 during the four-day property fair. They were also
entitled to lucky draws where the prizes include RM3,000 to RM10,000 cash,
a further RM3,000 discount, a 29-inch television set, a two-door
refrigerator, two units of 1hp air-conditioners, a washing machine and an
automatic swing gate.
Even after Mapex, some developers like Harum Intisari Sdn Bhd continue to
offer cash rebates for purchasers. During its “Eastern Rhythms” event last
weekend (where wushu and hands percussion performances were held to woo
the crowd), a special rebate of RM8,000 was offered to those buying the
bungalow land/bungalows at Bandar Botanic that boasts of many nice water
lily ponds and landscaped gardens.
There was a RM6,000 rebate for those buying the semi-detached homes,
RM2,000 rebate for the two-storey link homes and Crescent Lake Terraces
and RM500 discount for the medium-cost apartments in the township.
Agenda Istimewa Sdn Bhd is also offering a RM5,000 cash rebate for buyers
of its completed terrace houses in Kesuma Lakes.
Although cash rebates remain a strong incentive, people are still drawn by
the typical freebies like the free set of kitchen cabinets with hood,
cooking hobs, refrigerators and window blinds for buyers of homes in
Bandar Mahkota Cheras.
Another form of incentive is the guaranteed rental return (GRR) that is
proving to be very popular. Buyers of the newly launched Seasons Square in
Damansara Damai are offered a 6.5% GRR for two years.
Some developers also include a kind of cash back or pay back scheme that
is akin to an endowment policy with an insurance company.
For example, purchasers of the Lavender Heights bungalow project in
Senawang, Negri Sembilan, are being offered a Property Reward On Financial
Investment Tenure or P.R.O.F.I.T. plan where there is potential cash back
of up to 200% of the property value.
One of the most attractive GRR appears to be the 9% GRR for 10 years for
purchasers of the One Subang serviced apartment in USJ1. The developer
Casa Andaman Sdn Bhd has proudly advertised that its Block A was fully
sold in just 30 days!
Apparently, one of the reasons for the good sales of this block is that it
is under the GRR scheme. This block would be used as a hostel for students
of Prime College located at Summit USJ. The college’s new building is
under construction next to Summit USJ.
Buyers will also enjoy a potential yield of up to 100% of the purchaser
price under a 35-year investment link programme.
They will also get free mortgage reducing term assurance coverage for four
years, free legal fees on SPA and bank loan agreement and a free car park
as well as a fully furnished unit. |
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