Developers generous despite slowdown

Despite the slower economic growth and a softening property market, many developers are still giving freebies and financial incentives to purchasers.

While some developers are hoping that these incentives could spur sluggish sales, others genuinely want to reward their purchasers for having confidence in them.

Two recent property exhibitions held in Kuala Lumpur – iProperty.com Expo at the Kuala Lumpur Convention Centre and the 27th Malaysia International Property Showcase at the Mid Valley Megamall – saw many developers throwing big discounts and extras.

For example, Naza TTDI Sdn Bhd (TTDI) is still offering 10% discount to buyers of its award-winning Laman Seri Business Park. Bumiputra buyers get another 10% discount. These discounts were initially accorded to “early birds” during the initial stage of launch recently to reward purchasers for their confidence in TTDI.

Senior manager (marketing and sales administration) S.M. Faliq S.M. Nasimuddin said the discounts would be removed once the sales target of 70% was achieved.

“Sales have been encouraging. We have sold up to 55% since the recent launch,” he said, adding that the incentive was attractive because the project was positioned as the “best commercial centre” in Shah Alam.

Faliq said developers normally gave discounts when they were promoting a new concept or developing a new location.

“Such incentives are real, especially when promoted from the outset, and not when the sale is slow.

“In the case of our business park, we are introducing a new concept to Shah Alam that is tried and proven like our successful TTDI Plaza.

“Our discount is real and represents immediate gain once the property is nearing completion,” he said.

Purchasers of the four and five-storey strata shop offices priced from RM403,000 are also offered a two-year guaranteed rental return of 7.5% per annum and two years free maintenance fees.

Other projects that also offered discounts and incentives include:

Mutiara in Bukit Jalil: Purchasers of the 3-storey link houses priced from RM668,888 get eight air-conditioners, autogate, security alarm and a special loan package. The house will have a spacious 3,600 sq ft built-up area with 5+1 bedrooms and 6 bathrooms and two halls.

Amaya Saujana: Malton Bhd is offering two free car-parking bays and three free air-conditioners for purchasers of its Amaya freehold suites in Saujana, Selangor. The price per unit is from RM551,397.

NZX Square in Ara Damansara: Purchasers of the freehold hybrid semi-detached shop offices get incentives like zero interest until vacant possession (limited to 30 units), two years free maintenance fees, 20/80 scheme and 100% capital return.

Aman Perdana: Mah Sing Group offered 10% discount for five units during a recent weekend sale for its completed, freehold semi-detached houses priced from RM351,800 (32ft x 75ft) and from RM425,800 (35ft x 75ft).

At another launch to promote its semi-detached homes in this township, it also gave incentives worth RM70,000, including RM35,000 discount and even a “durian feast” for visitors.

Subang Alam: Subang Alam Sdn Bhd has offered lots of freebies during a recent sales launch ranging from a grand prize of a car worth RM100,000 for a lucky draw.

Other prizes include a 32-inch LCD TV set and notebook. For “early birds”, it offered free golf memberships and free legal fee for the sale and purchase agreement.

Jelutong Heights: Perhaps one of the biggest discounts was given by NBC Land Sdn Bhd who advertised in the newspaper offering “early birds” discount of RM50,000 for its 2½-storey semi-detached homes, Cypris and Dahlia, priced from RM1.17mil. The houses are 90% sold and 70% completed.

The Legend International Water Homes: This award-winning project in Port Dickson by the Kuala Lumpur Metro Group is offering 8% rental return per annum for the first three years and 12.5% per annum for the next 12 years.

For people who need a home and who think they can afford to finance their housing loan, I believe they should buy now, especially when the mortgage interest rates are still low and developers still giving away freebies.

Prices of new launches will only go up. That's a fact of life.

By The Star