Developers to roll out new, innovative financing packages

KUALA LUMPUR: Developers, hit by fallen sales, are scrambling to roll out new and innovative financing packages to move units, especially those already launched but not sold.

Sime Darby Property Bhd will up its ante on the competition with the offer of yet another round of attractive schemes under its third Parade of Homes campaign to be launched in conjunction with its participation at the three-day Malaysia Property Expo (MAPEX) beginning on March 6.

In addition to a “guarantee buy back” scheme, first introduced and for a limited period under its second Parade of Homes held last year, Sime Darby Property is going further this time round with the offer of a “special down payment scheme”.

Under the “guarantee buy back” scheme, the developer will buy back properties bought at 95% of its cost with no questions asked. The scheme will go on till June 15 this year, managing director Datuk Tunku Putra Badlishah tells The Edge Financial Daily.

With the special down payment scheme, buyers can pay the balance of the purchase price less the loan amount, in interest-free installments of up to 12 months. The special down payment scheme, however is also for properties that have already been launched, except land, industrial and low-cost properties.

Early bird rebates, on a declining scale, will also be offered for all properties purchased during the campaign period. Other offerings include free stamp duty on memorandum of transfer, free legal fee on loan documentations and sales and purchase agreements (SPA) and free stamp duty on loan documents.

The developer says they have managed to negotiate for the lowest interest rate with CIMB Bank, Malayan Banking Bhd and HSBC, at BLR –2.3%.

“We need to be better than what others are offering and are optimistic of good response given the success of the previous two Parade of Homes,” says Tunku Badlishah.

The first two campaigns raked in some RM392 million worth of sales. The first Parade of Homes, held last June, generated RM246 million sales over a 10-day period.

The month-long second Parade of Homes in November 2008, showcasing the developer’s 10 townships in the Klang Valley and Negri Sembilan chalked up RM146 million in sales.

Meanwhile, more than 40 developers are expected to showcase their properties at the coming MAPEX, organised by the Real Estate and Housing Developers Association Malaysia (Rehda) at the Mid Valley Exhibition Centre.

By The EDGE Malaysia (by Rosalynn Poh)