Your search results

Why Some New Condo Releases Outperform Others

Posted by Jayson Ang on July 9, 2024

| 0

TLDR

When it comes to the real estate market, familiarity plays a crucial role in the success of larger condo projects like Lentor Mansion, compared to smaller boutique condos. Developers of larger projects have more resources for aggressive marketing, leading to higher awareness and easier sales. In contrast, smaller projects rely more on individual property agents, which can impact sales negatively. Additionally, the practice of renting out cramped utility spaces, known as Coffin Homes, exploits vulnerable individuals who have limited housing options. To combat this issue, providing more rental options and implementing stricter regulations on rental rates are essential. Ultimately, the decision to buy or sell a property depends on individual circumstances, and seeking expert advice can guide you through the complex real estate landscape effectively.

Big Condo Projects: The Hot Trend in Today’s Real Estate Market!

Despite slower sales at projects like The Arcady at Boon Keng or Hillhaven, news reports reveal that Lentor Mansion has managed to sell 75% of its units. As industry insiders, we are often quick to provide lengthy justifications for this type of success – citing factors such as price, location, and layout. However, there is an underrated reason that may be the true key to Lentor Mansion’s triumph – familiarity.

Let’s do a little experiment – a show of hands, if you will. Who here has heard of Lentor Mansion? And who has heard of The Arcady or Hillhaven? While I can’t actually see you, I would wager that the majority are familiar with Lentor Mansion, while the other two may as well be obscure European handbag brands.

One could argue that size plays a significant role in this discrepancy. After all, Lentor Mansion is a larger project, and therefore, receives more extensive marketing efforts. Don’t get me wrong, there are other factors at play – such as more land space, better facilities, and lower maintenance costs – but a larger project simply has more units to move.

This is where the developer’s budget comes into play. With a bigger project, the developer not only cannot afford to fail, but they also have more pressure to meet their five-year deadline (although the ABSD rule has somewhat relaxed this). This results in a larger budget for aggressive marketing strategies, such as print and bus ads, online ads, press visits, and high-quality showrooms.

This heightened awareness of the project makes it easier for property agents to sell to their clients. It’s much simpler to pitch a development that the prospect has already heard of, rather than having to introduce it from scratch.

In contrast, smaller or boutique condos often rely more heavily on property agents for sales. However, when these sales do not materialize, the developers are quick to point fingers at the agents for not doing enough.

The truth is, realtors are individuals, and when they operate independently, it’s like a game of tug-of-war where everyone is pulling in different directions. This lack of cohesion and teamwork can significantly impact sales.

Additionally, property agencies are always looking for a big win. New projects are where they make a substantial portion of their income, and they want to impress developers to secure future projects. This results in a greater emphasis on larger developments, with more resources and marketing materials provided to their agents.

When all of these factors are combined, it becomes clear why larger developments tend to have better launch day results and sell out faster. With the rising costs of property portals and a more cautious approach to purchasing, this trend is only set to continue. So the next time you see a flashy ad for a big condo, remember that it’s all part of the game, and we, as consumers, must be selective in our purchases.

Unveiling the Global Phenomenon of Coffin Homes!

There has been speculation that a group of landlords have commenced the practice of leasing out cramped utility spaces to unsuspecting tenants. As I observe the minuscule dimensions of these spaces, I cannot help but conclude that it is a blatant exploitation of individuals – for only the most destitute or disadvantaged would choose to reside there (and let me clarify, I also deem the provision of these cramped “rooms” to domestic helpers as a disgrace).

These utility rooms can typically be found in antiquated, first-generation executive apartments or maisonettes. Alternatively, they may be remnants of upgraded flats from the late 1980s to the early 2000s. The average size of these rooms hovers around a meager 50 to 55 square feet, which is akin to the dimensions of a tiny office cubicle.

Let it be known, it is strictly prohibited to rent out utility rooms to tenants. However, the question remains, who would dare file a complaint? Those coerced into occupying these cramped spaces have no alternative options, and if they dare voice their grievances, they risk facing as much repercussions as the landlord. The landlord may face a fine, but the tenant would be left without affordable housing. It is abundantly clear who holds the upper hand in such a scenario. In a twisted manner, it is the very demographic of the tenants that perpetuates this unconscionable practice.

The most effective means to eradicate such malpractice is not solely through penalties and warnings to landlords (although that should not be disregarded if warranted), but rather by providing a plethora of rental options and implementing stricter regulations on rental rates. People will not acquiesce to living in a utility room if they can afford superior accommodations.

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 …

All Buying Tips

Strategies for Overcoming ABSD and Acquiring Multiple Properties in 2023 (Revised)

Jayson Ang – August 15, 2023 –

TLDR When it comes to navigating the Additional Buyers Stamp Duty (ABSD) in Singapore, there are legal strategies available to...

All Blog Posts Opinion

Unlock the Potential of Your Home: 5 Reasons to Start Selling Now

Jayson Ang – June 6, 2023 –

TLDR When considering selling your home, several key indicators can help you determine if it's the right time to make...

Mandarin Top 5

The Top 5 Renovation Tips For Increasing The Value Of Your Singapore Property Investment

Jayson Ang – July 28, 2024 –

When it comes to increasing the value of your Singapore property investment, strategic renovations can make a significant difference. Here...

All Blog Posts Buying Tips Opinion Reports

Can You Still Make Money from Older Freehold Condos in Singapore

Jayson Ang – November 23, 2024 –

TLDR While freehold condos might seem like a solid investment, the rise of new developments and aging buildings cast doubt...

All Blog Posts Buying Tips

35 Brand New Condominiums Nearing Their ABSD Deadline 2023

Jayson Ang – March 4, 2023 –

TLDR The blog post discusses the looming ABSD deadline for several new launch condos in 2023, highlighting the impact on...

Mandarin Top 5

5 Tips : How To Buy A Property In Singapore As A Foreigner

Jayson Ang – June 16, 2024 –

Singapore's property market is a popular choice for both locals and foreigners looking to invest in real estate. However,...

Mandarin Top 5

Top 5 Luxury Dining Experiences in Singapore

Jayson Ang – July 8, 2024 –

Singapore, known as the Lion City, is a melting pot of cultures, cuisines, and luxury experiences. With its rich history,...

All Buying Tips Opinion

Why Some New Condo Releases Outperform Others

Jayson Ang – July 9, 2024 –

TLDR When it comes to the real estate market, familiarity plays a crucial role in the success of larger condo...

All Blog Posts Buying Tips Reports

Are Cluster Landed Homes Still a Good Investment? Analyzing Their Performance Over the Past Decade

Jayson Ang – October 19, 2024 –

TLDR When it comes to cluster housing, freehold properties like Bishopsgate Residences command top prices, whereas bargains can be found...

Mandarin Top 5

Top 5 : Singapore’s Most Desirable Properties: A Look at the City’s Most Coveted Real Estate

Jayson Ang – October 5, 2024 –

Singapore, a bustling city-state known for its impressive skyline and thriving economy, is home to some of the most desirable...

All Buying Tips

Can Your HDB Flat Safeguard Your Retirement?

Jayson Ang – December 7, 2022 –

TLDR The HDB market has seen significant changes over the years, with many young owners looking to upgrade to private...

All Blog Posts Buying Tips

5 Facilities Selling Points Condo Sellers Should Emphasize To Entice Potential Buyers

Jayson Ang – May 23, 2023 –

TLDR When selling a condo, focusing on highlighting key facilities like gyms, swimming pools, family-friendly amenities, community gardens, and clubhouse...