Top 5 Boutique Shopping Streets in Singapore
Singapore, a cosmopolitan city-state known for its vibrant culture and diverse shopping scene, offers a unique blend of modern malls...
Read More
TLDR
When navigating the complexities of the real estate market, it’s crucial to be wary of hidden marketing tricks when shopping for a new property. Always scrutinize show flats to ensure accuracy in size representation, be cautious of illusions created to enhance space perception, understand the distinction between mixed-use and integrated developments, and avoid falling for “VIP” launch gimmicks. Additionally, compare projects diligently, verify sold percentages, and scrutinize facility claims for accuracy. Lastly, exercise due diligence when presented with calculations or simulations. Remember, thorough research and vigilance can help you make informed decisions in the real estate market.
Stricter rules and regulatory organizations such as CEA have curtailed the once wild and untamed property market of the 70s and 80s. But as much as the government may attempt to keep things in check, marketing strategies have found a way to circumvent this.
Although these may not always be illegal, they may easily be overlooked by the naive first-time homebuyer.
Therefore, when shopping for a new launch, look out for these hidden tricks!
1. Be Vigilant To Determine If The Show Flat Is The Typical Unit
The hefty price tag associated with constructing a show flat explains why developers typically prioritize creating units that accurately reflect the best of what their development has to offer.
Typically, show flats are presented in the most spacious-looking format, like if there are three different types of two-bedroom units, they’ll likely demonstrate the biggest or the most common one.
This could potentially create a misleading impression of the size of the unit, as the show flat merely serves as a representation of the actual unit you’re interested in.
Developers may love to showcase the top floor unit as a ‘showcase’ example, often featuring a high ceiling – this can be deceiving, making it difficult to truly grasp the size of the unit. A taller ceiling certainly does add an illusion of grandeur, however, so it’s not unheard of for buyers to be surprised on key collection day at how much smaller the unit actually is.
When visiting a show flat, ensure to always inquire about the ceiling height, and check if the measurements are standard across all the units you are examining.
2. Show Flat Illusions Are Made To Make It Trickier To Gauge The Actual Size
For sellers who are unsure whether to invest in staging their home for sale, a show flat provides the perfect illustration of how dressing up a space can make a tremendous impact.
Apart from the decoration, and the enticing aromas, another technique used is to take out certain rooms to highlight the dimensions of the living and dining areas.
Nowadays this is subject to restrictions (developers must indicate which features are part of the interior design and which walls have been removed), but it makes it hard for the casual observer to truly get an accurate feeling of the space.
To further create the illusion of a more spacious interior, you can employ the clever use of mirrors and transparent furniture pieces with visible legs. Such techniques will have a remarkable effect, making the space appear larger than it actually is.
Keep an eye on the size of the furniture used; sometimes custom-made items may appear great, yet not actually be practical in terms of size. Consider, for example, those slim sofas that look amazing yet aren’t actually very accommodating.
3. The Term “Mixed-Use” Is Loosely Defined
“Mixed use and integrated may sound like similar terms, but there’s a significant difference!
Integrated developments are usually located near MRT stations, bus interchanges, etc. and often include civic amenities such as a town library or clinic.
Unfortunately, we have noticed that some agents don’t bother to explain the difference between the two, leaving potential buyers confused.”
When it comes to mixed-use projects, the success of the commercial element can vary drastically. Take The Poiz and Sceneca Residence for example; these mixed-use developments went beyond the norm by seeking out desirable tenants like supermarkets.
Be wary of so-called ‘mixed-use’ projects that are nothing more than an assorted collection of shops, randomly sold to the highest bidder. All too often, these types of developments become mixed up of convenience stores that offer little value to their customers, as the stores may rotate and disappear at any time.
Therefore, when considering a property, always inquire as to the commercial components that have been promised. Do not be fooled by the phrase ‘shops right downstairs’, as it means nothing if none of them provide what you need.
4. VVIP,And Other “Invite-Only” Launch Gimmicks
Generally, buying in the early launch stages can lead to lower prices; this is explained in detail in my developer pricing article. It should also be noted that there is no guarantee that prices won’t be reduced for later buyers.
Developers may have to lower prices to meet their ABSD deadlines or if sales are not as successful as anticipated, meaning that the “early bird discount” of 10% does not guarantee a 10% profit once the units are sold at regular price.
Be wary of websites and advertisements luring you in with the words “VIP” or “VVIP”. Many agents may try to give the impression that they have special privileges to help you get a higher status, but this is nothing more than a marketing ploy.
If you visit a show flat when it’s crowded, you’ll soon realize that everyone has a “VIP” sticker.
The only true VIP previews come from the developer, usually given to friends and family or to customers who have purchased with them before.
5. Compare The Projects Using Only Selective Information
The sales team typically has a kit to handily illustrate price comparisons with similar properties. This could involve speculation of rental rates or yields in the long term.
The seller may be inclined to flatter the new launch with cleverly-selected information – such as the most expensive nearby properties – to make it seem like a great deal. On the flip side, they could deliberately omit lower-priced developments – but if called out, they might claim they’re too far away or too old to matter.
It may appear that the new launch is more affordable than it actually is, due to some of the contrasting evaluations, such as between a ground floor unit of the new launch and a top floor unit of a nearby condominium.
6. “Already Sold” Percentage Not Indicative Of The Entire Project
At larger developments, it’s not uncommon for the launch to only release a limited number of units.
Take, for instance, a condo with 600 units; it may only put out 120 at the start. When people say “80 per cent sold,” it may just mean that 96 have been purchased, not 480.
This is often done to generate headlines and urge buyers to act quickly. How many phases and when one ends and another begins is solely up to the developer – Luxus Hills, a landed development, had 25 phases throughout its launch.
At point 3, we briefly discussed how, despite what one might expect, earlier phases such as one and two can offer almost the same early-bird discounts as the earliest ones, making them equally lucrative deals.
7. Facilities Presented As Separate Features, Repeated Multiple Times, Appear Strikingly Alike
Have you ever seen those too-good-to-be-true boasts of “400+ facilities”?
Well, they may actually be based on reality. Often, these are just different sections of the same facility, cleverly presented as multiple features (take a garden, for example – a Japanese garden, a flower garden, and a rock garden could all be part of one larger garden, but packaged and sold as three separate features).
Examine the scale model of the condo closely, and you’ll spot the facilities that have been advertised as separate features, even if they’re as small as a playground spot or a solitary BBQ pavilion.
It can get tricky with pools – for instance, the “sunning pool” might just be the shallow end of the lap pool, which is why you could see in the brochure that there were three to five pools when you can only spot two in the actual display.
Make sure to use your eyes to find the smaller or fewer facilities than what the materials have promised!
Be Mindful Of Any On-The-Spot Calculations Or Simulations That Are Presented To You; Use Due Diligence
Many prospective buyers have been guided through a demonstration of potential returns, rental yields, etc., usually with the help of flashy visuals and graphs.
Although this may be useful, a few buyers have commented that the agents tend to speak quickly, making it hard to understand the mathematical processes unless you already have a background in investing.
Furthermore, the information presented could be somewhat selective – for instance, taking the average rental rate for the neighbourhood as opposed to the median to project potential yields.
If a development nearby boasts unusually high rates – such as a boutique luxury condo – this will inflate the average; instead, relying on the median is a more accurate indicator.
Don’t take the sales agent’s word as gospel; why not take some time to review the details in your own time?
Or, reach out to me to validate any claims against my reviews of new and resale condos.
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
You May Also Like …
6 Ultra-Private Condominiums in Singapore Offering Unparalleled Seclusion
TLDR This article highlights six luxury condominiums in Singapore that offer exceptional privacy by having no direct neighbors on the...
Read More
Top 5 Secrets : Foreign Investors Are Rarely Told About Singapore’s Real Estate Market
Singapore's real estate market has been a popular choice for foreign investors due to its stable economy, strategic location, and...
Read More
What Is The Cost Of Constructing A Landed Property In Singapore?
TLDR Building a landed property in Singapore can be a costly endeavor, with prices ranging from $300 to $500 per...
Read More
From Garden City to Smart Nation: Singapore’s Top 5 Goals Building a Sustainable and Livable City
Singapore is a small island city-state with a population of over 5 million people. Its urban landscape is constantly evolving,...
Read More
The Hidden Worth of Singapore’s Far-Flung HDBs
TLDR Location is important in Singapore’s property market, but “ulu” (remote) HDB flats in areas like Woodlands, Choa Chu Kang,...
Read More
5 Proven Strategies for Increasing the Value of Your Singapore Property
In Singapore's competitive real estate market, adding value to your property can be the key to making a profitable investment....
Read More
Is Singapore’s Property Market on the Verge of a Crash? Understanding the 5 Factors at Play
The Singapore property market has long been an attractive option for both local and international investors. However, as with any...
Read More
The 99-to-1 Property Split Strategy: Legality and Risks
TLDR The 99-to-1 property ownership split in Singapore, where one spouse holds 99% and the other 1%, is used to...
Read More
Top 5 : What Are The Key Factors That Drive Foreign Investment In Singapore’s Real Estate Market
Singapore, a thriving city-state in Southeast Asia, has become a magnet for foreign investors looking to capitalize on its booming...
Read More
Unveiling 4 Scenarios of CPF Accrued Interest Impact on Property Owners
TLDR When selling your first home, be aware of CPF accrued interest, which is the interest that would have accumulated...
Read More
7 Essential Tips for Finding Your Perfect Retirement Home
TLDR Searching for a forever home should balance heart and practicality. Avoid homes with stairs, high cabinets, big kitchens, and...
Read More
Sentosa’s Sizzling Property Market: 5 Reasons Chinese Investors are Flocking to Singapore’s Premier Island
Sentosa's Sizzling Property Market: 5 Reasons Chinese Investors are Flocking to Singapore's Premier Island Here are the top 5 reasons...
Read More
Challenging the Myth of Lease Decay: Older Leasehold Condos Outperforming Newer Ones
TLDR Older leasehold condos in Singapore, particularly those built in the 1980s and 1990s, have shown annualised price growth exceeding...
Read More
Is Housing Policy an Unintended Factor in Singapore’s Birth Rate?
TLDR Singapore’s housing policies contribute to its declining birth rate through a complex mix of factors beyond just price. Flat...
Read More
Top 5 Thai Restaurants in Singapore
Singapore, a melting pot of cultures and cuisines, is a food lover's paradise. Among the myriad of dining options available,...
Read More
21 Condominiums with Landed Properties Available for Foreign Purchase in Singapore
TLDR Foreigners who want landed living in Singapore but cannot buy traditional landed homes (except in Sentosa Cove) can consider...
Read More
Selling Your Singapore Condo? Don’t Overlook This Critical Factor
TLDR When selling a condo in Singapore, the number of units listed in the same development plays a crucial role....
Read More
Top 5 Best Scenic Drives in Singapore
Singapore, a bustling city-state known for its modern architecture and vibrant culture, also offers some of the most picturesque driving...
Read More
The Perils of Subletting in Singapore: Why Paying Rent On Time Isn’t Always Enough
TLDR Subtenants often mistakenly believe that paying rent consistently guarantees security. However, their rights are limited since the main tenant...
Read More
