Launch of a new property project

I attended a launch of a new property project recently. There were a few hundred potential buyers. They were given a queue number and allowed into the show flat in batches.

Although the project had a few hundred units, the marketing consultants released only one floor at a time. The prices were not disclosed. They will only be given to interested buyers, on private negotiation. The buyers were told that of the units released earlier, more than 90% had been booked, of which a high percentage had already presented their checks for the booking fee. This arrangement created the impression of overwhelming demand for a limited supply.

When the price was finally told to me "as a privilege", it was 70% more costly (per square feet) than a similar 5 years condominium located 100 meters away. A buyer who is not aware about the market price might be easily misled into booking an over-priced property and acting under a stressed condition. Later, I learned that many of the buyers were allowed to give an unsigned blank check for their booking.

The above pracitces are deceptive. This is how a property bubble is created and buyers were misled into booking for an over-priced property.

Before you consider any property investment, do your research. Go to this website, www.easysearch.sg (Real Estate Data) and find out the recently transacted prices for similar properties in the vicinity. You can pay more for a new property but the difference should not be more than 20%.

Tan Kin Lian