ST : Get first pick at condo previews

Mar 7, 2010

Get first pick at condo previews

No longer as exclusive as before, they are a win-win for buyer and developer

By Joyce Teo

Official property launches, often announced in full-page colour advertisements in newspapers, are for the masses.

That is when the public throngs the showflat. Individuals, couples and families with kids in tow turn up in full force. Many are not really buyers.

What can a keen buyer do to avoid the crowds? He can simply head for the VVIP preview - a preview for very, very important persons, or quite simply, a preview.

Contrary to what the name suggests, you become truly important to developers these days once you show keen interest. Gone are the days - at least for now - when some developers screened their potential buyers.

'Previously, the VVIPs were bosses' friends, business associates. Now, anybody with money to buy will become one,' said a property agent who declined to be named.

'The whole intention (of the VVIP preview) is for the property agency to assess interest, and accumulate names of potential buyers. Nowadays, we assess the interest first, before the launch.'

Indeed, previews or soft launches are a way for developers to test the market. If the preview response is strong, the developer will likely raise prices come launch time, experts said.

Take the latest mass market preview of the 608-unit The Estuary in Yishun, which was launched yesterday. During the preview, its units went for an initial average price of $750 per sq ft.

But following strong demand after a preview starting on Feb 25 for staff, business associates and its property agencies' clients, developer MCL Land raised prices twice, by 2 per cent each time, for the new units released the following two days.

On Feb 25, about 150 units were snapped up. The next day, the figure was more than 200 units. By Feb 27, more than 300 of about 350 units that were released for sale were taken up.

For keen investors, attending a condo preview means getting the first bite of the cherry. 'You don't wait until the launch date to buy because the unit you want may not be available any more,' said ERA Asia-Pacific associate director Eugene Lim. 'Besides, the first day of the launch is usually packed.'

Buyers now do their homework way before the preview and why not, given the service property agents happily render these days? These agents now take a proactive approach and will even visit potential buyers' homes to do presentations on a new launch.

Mr Lim said property agents started doing presentations at potential buyers' homes last year.

Buyers can also get quite a lot of information these days on the Internet. 'You look at the floor plans, identify which unit you want to buy, and book it with the agent, all before the preview,' said Mr Lim.

Agents will give an indicative price range for the buyers to work with, as the property's pricing will be announced only on the preview day.

On the day itself, the agent will book the unit for his client, as long as the client's choice unit is available and it fits his budget, experts said.

'There's been a change of buying behaviour. Buyers used to want to see the showflat before they made a decision,' said Mr Steven Tan, executive director of OrangeTee's residential division. 'But during the boom in 2007, they realised the units they wanted were sold by the time they arrived at the showflat.'

He added: 'Buyers want to feel special. So agents now let them book the units first.'

joyceteo@sph.com.sg