Decades ago, buyers queued and even paid under the table for new launches. With more supply than demand, developers now compete with show villages, facility lists, discounts and ownership schemes.
How do developers persuade buyers, and how should I respond?
“the decision needs to come from your own judgment”
Recognise the four Ps, place, product, price and packaging, as emotional triggers, and remember that every freebie is built into the price. Be patient, shop around, and buy only what you could afford even without a tenant.
Why
Place: galleries built to hold you
From the landscaped entrance to the guard who opens the door, galleries and show villages work like a fish trap: easy to enter, hard to leave. Free food and family events bring you in.
Product: always something new
Mixed developments, transit-oriented projects, townships of thousands of acres, semi-Ds that look like bungalows, dual keys, dozens of facilities and smart homes give the brochure something to print.
Price and packaging: you pay for it all
Roads, security, landscaping and brand are priced in, and so are discounts, loyalty and referral rebates, free legal fees, furnishing and guaranteed returns of 6% for three to five years.
What to do
- Treat every promotion as part of the price, and compare the net price.
- Ignore deadlines: campaigns are often extended.
- Shop around and compare with similar projects before deciding.
- Buy only if you can afford the instalment even without a tenant.
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.
THINGS DEVELOPERS DO TO MAKE YOU BUY THEIR PROPERTY
Sources & Verification Data
Summarised from Sean's English captions for this July 2019 video. Some scheme names in the captions are unclear and are left out. The quoted line is verbatim; everything else is paraphrased.
