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21-10-14, 22:32
http://www.straitstimes.com/premium/money/story/carats-perk-lacklustre-market-20141021

Carats to perk up a lacklustre market?

Developers offering 'novel' incentives to tempt hesitant buyers, investors

Published on Oct 21, 2014 1:26 AM

By Rennie Whang


DEVELOPERS are offering incentives ranging from lucky draws for diamonds to discounts on sports cars in a bid to get reluctant buyers and investors back to the property market.

Market experts say these perks are far more enticing than previous "carrots", such as free furniture or rental guarantees.

Qingjian Realty is offering 20 one-carat diamonds in a lucky draw for valid e-applicants for its Bellewoods executive condominium (EC) project. The draw will be held on Nov 15.

Bellewoods has attracted about 1,000 e-applications for its 561 units, which have an indicative price of about $750 to $820 psf.

"The EC market has many first and second timers, and we felt a diamond would be appropriate - for a fiancee, for example," said Mr Donald Ng, head of sales and marketing at Qingjian Realty.

Buyers of units at Keppel Land's Highline Residences in Kim Tian Road get a free three-year "lifestyle membership", which includes two single- trip limousine services a year and twice-yearly complimentary golfing at Ria Bintan Golf Club for up to four people on each trip.

The developer offered similar membership perks for its other projects such as Caribbean at Keppel Bay and Reflections at Keppel Bay.

Experts said perks have become part of the marketing campaign for new units. They also give developers a way to re-ignite interest in completed projects that have lost that "brand new" appeal.

"Usually this comes with the view of trying to protect their price line, and not upsetting [those who bought] during the initial launch phases," said Mr Donald Han, managing director of Chestertons.

"While earlier buyers might not have benefited from perks, they had the opportunity to handpick units with the best views, or had early bird discounts."

UIC and SingLand are offering discounts on Aston Martins for buyers of three-bedders or larger units at Mon Jervois this month. Visitors to the showflat last Saturday had the chance to test-drive models.

The partnership with Aston Martin Singapore "is not about driving sales, but about cross- branding and accessing each others' clientele", said Mr Alvin Tan, senior director of residential sales at Savills Singapore, an agency marketing Mon Jervois.

The 109-unit project is about 32 per cent sold; its average price is $2,059 psf. About 50 per cent of the unsold units are three-bedders and up.

IG Development had announced that it would give away a $200,000 Mercedes car to the first three buyers of one of its Infinium cluster homes at Kovan but it later withdrew this in favour of discounts.

The first three buyers can now get a cut on the sale price of around $100 psf, which the firm says is a more attractive deal, given that the saving could be about $500,000 or more.

The project, which had its preview last weekend, has three or four interested buyers. The developer is likely to re-introduce the car offer once the first three sales have been completed, said Mr Ujeen Tan, chief executive of marketing agent UPG International.

The 14 four-storey cluster homes come with private lifts and ensuite bathrooms for all five bedrooms; the homes range from 4,962 sq ft to 5,716 sq ft.

Linking up with car dealers is not a new idea. Similar deals were offered for V on Shenton and Eight Riversuites. There were also offers made with car firms back in the 2004-06 period but the booming property market in subsequent years meant such promotions were unnecessary, The Straits Times understands.

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