Property developers get creative

Property developers are becoming more creative with their projects.

They are coming up with new designs and lifestyle themes for their developments to differentiate their projects amid the growing competition.

From waterfront units to condominiums designed by renowned architects, and more recently, ‘sports-themed’ apartments, developers are chasing new lifestyle concepts to draw home buyers to their door – and it looks like it is working.

Parc Olympia in Pasir Ris sold more units on the first weekend of its launch compared to neighbouring development, Palm Isles.

Alan Tan, head of Project Advisory at HSR International Realtors Pte Ltd, said: “Developers are going into these themes basically for product differentiation and branding. The differentiation itself will create more awareness, create more hype. It will lure more buyers to come.”

Experts said developers’ move towards creativity and differentiation has little to do with the declining number of housing units sold.

Analysts are upbeat that demand for private housing remains robust in Singapore.

But an onslaught of supply may drive developers to find innovative ways to grab sales.

Eight thousand more private residential units are expected to hit the market over the next few months, bringing the total units introduced to an estimated 21,046 for this year.

In 2011, the total number of units introduced was 17,710.

Analysts said constructing themes like these will help developers get the ‘first cut’ of sales amidst this flood of property options in the market.

Colin Tan, head of Research & Consultancy at Chesterton Suntec International Pte Ltd, said: “What they are worried about is how deep is the pool of buyers so in that sense, developers would like to go all out to catch buyers, potential buyers before they are snapped up by other projects.”

For Koh Brothers, the developer behind Parc Olympia, an average of S$5 to S$10 per square foot sold is spent on project theme and branding.

Francis Koh, managing director and group CEO of Koh Brothers Group Limited, said: “We have to know the market trend and also the needs of the buyers, the developer will then look into some statistics and figures from the government to inform us so we can prepare for it.”

Analysts said that while this trend is not new, themed projects are likely to be more prevalent in the near future.

Meanwhile, some developers are tying up with organisers to hold art exhibitions and other activities in showflats.

This is to create buzz and draw crowds, including potential buyers, to their showflats after a development’s initial launch.

Richard Nah, senior manager at MCC Land (Singapore) Pte Ltd, said: “I think maybe even instrumental performances…or other forms of maybe even technology advances. Things that are interesting, things that may or may not be related to the property showflat kind of norm. If we can introduce them, we will.”

Source : Channel NewsAsia – 6 Aug 2012

Join The Discussion

Compare listings