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04-05-2012, 07:00 AM
Tell me this is a joke? Giving away cars if you buy property? A sign of buyer fatigue perhaps? 
So in addition to paying for your property, you also have to pay for (an overpriced) COE...... 
The Straits Times
May 4, 2012
Punggol project dangles big carrot
Observers see car freebies as statement by less-known player
By Gan Yu Jia
A PROPERTY developer has taken the trend of offering freebies at new condos to new heights by offering 18 European cars to buyers of a new Punggol project.
Freebies such as shopping vouchers and other modest promotions are not unusual in the highly competitive housing market, but analysts say offering such a big carrot as cars is out of the ordinary.
Furthermore, mass market projects generally sell well due to their relative affordability, unlike the moribund upmarket residential market.
The giveaway of 18 Volkswagen cars comes from the developers of the mass market FLO Residence, to be launched later this month by Capital Development and ZACD Investments.
As well as the chance to win a car, the developers are touting their maiden joint venture as 'possibly the most affordable private residence' in Punggol, a fast-growing new waterfront area.
Prices for the 530-unit development start from $620,000 for two-bedders ranging from 764 sq ft to 861 sq ft, and $990,000 for four-bedders at 1,227 sq ft to 1,346 sq ft. The average pricing across all unit sizes is $850 per sq ft (psf).
The 99-year leasehold property is located at Punggol Field Walk.
Mr Colin Tan, research head at Chesterton Suntec International, thinks the extra carrots from the developers may be due to the fact that they have a less known track record compared to bigger players in the industry.
'The general trend of giving freebies is there, but they're giving more than the usual freebies. If you think about it carefully, they don't have to give away 18 cars - they could give away five or 10,' he said. 'They're trying to make a statement.'
Under the promotion, the first 30 buyers will go into a lucky draw, with one Volkswagen car up for grabs.
The 29 who were unsuccessful will be put to the next round with the second batch of 30 buyers, making it a total of 59 who will gun for another Volkswagen and so on.
One of the cars is a Jetta while the other 17 are the Polo.
However, the cars do not come with certificates of entitlement (COEs).
Still, the Jetta is worth about $75,000 while the Polo is worth some $64,000 without COEs. They work out to a hefty discount for the lucky buyers.
Mr Tan does not believe the promotion to be a sign of buyer fatigue in the mass market, but rather that 'competition is heating up' among developers to attract buyers.
'While developers are quite confident of sales, nobody is quite sure how deep the pool of buyers will be. (The developers) are trying to get off to a flying start, which you call a comfortable sales level... after which they can take their time to sell,' he said.
He thinks such marketing tactics appeal to 'yuppies', as 'Volkswagens (are) probably more sexy than Toyota Altis or Nissan Sunny'.
Ms Emily Eng, director of residential services at SLP International Property Consultants, which is marketing the project, said: 'We want something that will attract attention. It's something that will get our buyers talking - if you buy this project, you'll get a chance to win a car, versus buying another project when you don't get that chance.'
She added that buyers 'can see for themselves' that unit prices have not been marked up for this lucky draw.
'If you compare (our prices) to the two other private condos in Punggol, A Treasure Trove and Watertown... you'll know (we're) very competitive.'
Units at A Treasure Trove were sold at an average of $866 psf during its launch last September while Watertown's initial sales in January were transacted at an average of about $1,080 psf.
yjgan@sph.com.sg
So in addition to paying for your property, you also have to pay for (an overpriced) COE...... The Straits Times
May 4, 2012
Punggol project dangles big carrot
Observers see car freebies as statement by less-known player
By Gan Yu Jia
A PROPERTY developer has taken the trend of offering freebies at new condos to new heights by offering 18 European cars to buyers of a new Punggol project.
Freebies such as shopping vouchers and other modest promotions are not unusual in the highly competitive housing market, but analysts say offering such a big carrot as cars is out of the ordinary.
Furthermore, mass market projects generally sell well due to their relative affordability, unlike the moribund upmarket residential market.
The giveaway of 18 Volkswagen cars comes from the developers of the mass market FLO Residence, to be launched later this month by Capital Development and ZACD Investments.
As well as the chance to win a car, the developers are touting their maiden joint venture as 'possibly the most affordable private residence' in Punggol, a fast-growing new waterfront area.
Prices for the 530-unit development start from $620,000 for two-bedders ranging from 764 sq ft to 861 sq ft, and $990,000 for four-bedders at 1,227 sq ft to 1,346 sq ft. The average pricing across all unit sizes is $850 per sq ft (psf).
The 99-year leasehold property is located at Punggol Field Walk.
Mr Colin Tan, research head at Chesterton Suntec International, thinks the extra carrots from the developers may be due to the fact that they have a less known track record compared to bigger players in the industry.
'The general trend of giving freebies is there, but they're giving more than the usual freebies. If you think about it carefully, they don't have to give away 18 cars - they could give away five or 10,' he said. 'They're trying to make a statement.'
Under the promotion, the first 30 buyers will go into a lucky draw, with one Volkswagen car up for grabs.
The 29 who were unsuccessful will be put to the next round with the second batch of 30 buyers, making it a total of 59 who will gun for another Volkswagen and so on.
One of the cars is a Jetta while the other 17 are the Polo.
However, the cars do not come with certificates of entitlement (COEs).
Still, the Jetta is worth about $75,000 while the Polo is worth some $64,000 without COEs. They work out to a hefty discount for the lucky buyers.
Mr Tan does not believe the promotion to be a sign of buyer fatigue in the mass market, but rather that 'competition is heating up' among developers to attract buyers.
'While developers are quite confident of sales, nobody is quite sure how deep the pool of buyers will be. (The developers) are trying to get off to a flying start, which you call a comfortable sales level... after which they can take their time to sell,' he said.
He thinks such marketing tactics appeal to 'yuppies', as 'Volkswagens (are) probably more sexy than Toyota Altis or Nissan Sunny'.
Ms Emily Eng, director of residential services at SLP International Property Consultants, which is marketing the project, said: 'We want something that will attract attention. It's something that will get our buyers talking - if you buy this project, you'll get a chance to win a car, versus buying another project when you don't get that chance.'
She added that buyers 'can see for themselves' that unit prices have not been marked up for this lucky draw.
'If you compare (our prices) to the two other private condos in Punggol, A Treasure Trove and Watertown... you'll know (we're) very competitive.'
Units at A Treasure Trove were sold at an average of $866 psf during its launch last September while Watertown's initial sales in January were transacted at an average of about $1,080 psf.
yjgan@sph.com.sg
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