With the economy downturn, ringgit continue to drop and overall soft property market in this year, all of the property developers are seeking the new strategies to sell-out their property units. Besides, we can see the news that said some banks have provide the favourable financial options with more flexible terms to those who are plan to buy house in this slow property market.
In today article, we will reveal some creative strategies that the property developer are currently adopt to sell out their property units and its usually work:
1. Financing Options
Not only bank can make this strategy, the property developers are using this way to attract housebuyers too. Some of the property developers are offer some favourable facilities such as house loan, mortgage loan and deferred payment options to attract housebuyers comes towards them.
For instance, Sunway Bhd caused quite a stir in late March 2016 when it announced that it was offering up to 88% financing to housebuyers under a unique ownership campaign.
Sarena Cheah, who is Sunway’s managing director for its Malaysia and Singapore property development division, had said that the company would offer financing from internally generated funds as an option for buyers who are unable to secure financing from banks.
Under the scheme, housebuyers will have 2 options to apply for home/ mortgage loans with either commercial banks or with Sunway.
2. Upfront payment installment plans
The property developer understand that most of the people have so much problems on managing their debts and it caused them don’t have the financial capacity to even start buying a house for themselves.
In general, housebuyers can borrow up to 90% of the property price with bank for their first two residential properties, and they will need to prepare another 10% in cash for down payment of the property.
For example, if you buy a house priced at RM 400k, then you will need to fork out at least RM 40k for the property’s down payment. Besides that, do not forget that you will still have to pay for the miscellaneous fees and charges such as stamp duties, legal fees, agent fees and etc, which could add up to another RM 20k on top o the down payment.
By consider this issues, some developers are come out with a strategy which offer down payment installment plans for the potential housebuyers.
For instance, property developer A offering the down payment installment plans of up to 12 months with 0% interest for its condos. The condos price ranged between RM 300k and RM 500K. This plan can assist those who plan to buy a house but not enough savings for down payment.
3. Individual unit instead of en bloc
Since commercial property can easily impacted by slow economy. The softer property market, combine with the oversupply of office space issues meant that the developers had to get some ways to attract property investors to buy their buildings or units.
For example, property developer B come a plan that selling its office space on individual unit basis instead of en block (the sale of ALL the units in a strata to a buyer).
The price of the smaller units of about 645 square feet will be slightly above RM 1 million range. While have other company prefer to sell the 29-storey office block en bloc, and the price would be cheaper than on a per square feet basis, but the expenditure would be higher.
4. Give out the sweepstakes and freebies
Some of the developers are often use this marketing strategy to attract the potential housebuyers. They may given out the freebies such as air-conditioner, fully furnished kitchen or toilets, bed room wardrobes and etc. Tell you a little secret, developers are able to give away such freebies to the property buyer is because they can get the discount from the supplier in buying those things in bulk. So, their costs are minimal. While, some of the property developers are appear for a sweepstakes that the first 100 applicants are entitled to waive the stamp duties and legal fees and etc.
The above are the common strategies that all the property developers are like to use. The housebuyers will get more sweets from property developer especially during downturn property market. Other than that, in order to solve the hot topic “Most of the Malaysian can’t afford to buy a house”, the government also have come out some schemes and allowances such as Rent-To-Own, MyDeposit, MyFirstHome and etc to help them to achieve their dream of owning a own house.