Viewers shopping for new launches ask whether to stick with big, publicly listed developers or consider smaller and newer ones. Sean compares brochures from one of each: a two-room unit from a big name in Petaling Jaya and a three-room unit from a smaller developer in Kuala Lumpur, both at about RM750,000.
Does the developer's brand matter, and how should a buyer compare projects from big and small developers?
“investors only look at numbers”
For an investment, the brand matters less than the numbers: tenure, price per sq ft against the neighbours, the net price after rebates, and the rent it can earn. Big developers sell a lifestyle and command a premium; smaller ones often offer more space and discounts for the money. For your own home, buy what feels right within your budget.
Why
Big names sell a lifestyle
Branded developers market the surroundings, lakes and landscaping, and their brand reassures buyers. Smaller developers tend to compete on facilities, price and discounts.
Brochures leave things out
Developers don't advertise what works against them, such as leasehold tenure or how many car parks come with a unit. Ask directly.
Built-up may include extras
Some developers count air-conditioner ledges or balconies in the built-up area, which lowers the apparent price per sq ft. It is marketing, not cheating, but compare like with like.
Construction time changes the deal
Whether a project takes three, four or five years matters: you are paying today for a unit completed years later, and rebates often vary with the construction stage.
What to do
- Ask whether the land is freehold or leasehold, and how many car parks are included.
- Check the price per sq ft of neighbouring projects on property portals.
- Ask what the built-up area includes, and the construction period.
- Work out the net price after every discount and rebate.
- Visit the site to see what is next door, such as a school, market or busy junction.
Editorial Note: Summarised from Sean Tan's full episode. The quoted answer is in his own words; the rest is our paraphrase. Figures reflect the recording date, so check current rates and rules before acting on them.
Big and branded VS New and Small developers
Sources & Verification Data
Summarised from Sean's full English captions for this September 2017 video, which he says is not sponsored. The projects compared are not named here. The quoted line is verbatim; everything else is paraphrased.
