reporter2
21-05-20, 14:43
PropNex sells 113 new homes during 6 weeks of circuit breaker
Buyers ready to commit to new launches after narrowing down selection through virtual platforms
Thu, May 21, 2020
Siow Li Sen
PROPNEX Realty has sold 113 new homes in the first six weeks of the "circuit breaker", accounting for an impressive 74.3 per cent market share of top-selling projects as buyers get comfortable with virtual viewing.
That makes for almost three-quarters of the 152 units in the six top-selling projects moved between April 6 and May 17.
The clincher, as usual, is price - or "rightly priced" properties, said Ismail Gafoor, chief executive, PropNex Realty. "Generally for HDB upgraders, they usually purchase properties not exceeding S$2 million, within the range of S$1.5 million," he said.
PropNex, which has 8,500 agents, had more customers committing to purchases after seeing the properties on the virtual platform.
On its high market share, he said that immediately after the circuit breaker announcement, PropNex conducted "quite intensive" training to equip agents to conduct their business via virtual tours and online meetings.
"Six weeks into circuit breaker, we are witnessing more customers consisting of genuine upgraders and investors who are ready to commit to new launches, after narrowing down their selection through virtual platforms," Mr Ismail said.
There were also buyers who had seen the projects earlier before circuit breaker started and closed the deal later.
Projects that are "rightly priced" such as Treasure at Tampines, Florence Residences, Parc Clematis and Parc Esta continued to attract genuine HDB upgraders and investors, he said.
These are among the projects that have been doing well in the six weeks of the "circuit breaker". The six top-selling projects are Treasure at Tampines, Florence Residence, Parc Clematis, Parc Esta, Kopar at Newton and Marina One Residences.
Mr Ismail is confident that 200 units could be sold in May as long as they are rightly priced. Developers sold 277 new private homes in April, a dive of 58 per cent from 660 in March.
In April, the top five selling projects' median prices ranged from S$1,208 psf to S$2,241 psf.
Looking ahead to June 2 when the circut breaker ends, Mr Ismail expects that for projects which were already launched prior to the circuit breaker, agents will continue to use virtual tours of the show flat to showcase the layout and design of the respective developments.
He also expects developers to give "star buy" discounts to help move sales, rather than offer a big drop in prices.
Singapore will lift circuit breaker measures from June 2 in three phases. But even after the circuit breaker is lifted, there are likely to be restrictions on opening show flats immediately. Hence, developers will still have to depend on conducting virtual show flat tours as part of promoting their projects, so as not to delay launches, he said.
"Eventually when restrictions are lifted, developers will have to go back to the old norms of opening the show flats, while confirming to guidelines of social distancing and proper crowd control and tracking.
"We do not expect developers to drop their prices hugely, mainly because current selling prices are so sensitively priced with low profit margins.
"However, we can expect developers to give 'star buy' discounts for some units or special discounts for certain stacks of the development, in order to continue the momentum of clearing some units during this period."
PropNex is the appointed agency of more than 90 per cent of projects in Singapore. Currently, it is marketing close to 100 developments in the republic.
Buyers ready to commit to new launches after narrowing down selection through virtual platforms
Thu, May 21, 2020
Siow Li Sen
PROPNEX Realty has sold 113 new homes in the first six weeks of the "circuit breaker", accounting for an impressive 74.3 per cent market share of top-selling projects as buyers get comfortable with virtual viewing.
That makes for almost three-quarters of the 152 units in the six top-selling projects moved between April 6 and May 17.
The clincher, as usual, is price - or "rightly priced" properties, said Ismail Gafoor, chief executive, PropNex Realty. "Generally for HDB upgraders, they usually purchase properties not exceeding S$2 million, within the range of S$1.5 million," he said.
PropNex, which has 8,500 agents, had more customers committing to purchases after seeing the properties on the virtual platform.
On its high market share, he said that immediately after the circuit breaker announcement, PropNex conducted "quite intensive" training to equip agents to conduct their business via virtual tours and online meetings.
"Six weeks into circuit breaker, we are witnessing more customers consisting of genuine upgraders and investors who are ready to commit to new launches, after narrowing down their selection through virtual platforms," Mr Ismail said.
There were also buyers who had seen the projects earlier before circuit breaker started and closed the deal later.
Projects that are "rightly priced" such as Treasure at Tampines, Florence Residences, Parc Clematis and Parc Esta continued to attract genuine HDB upgraders and investors, he said.
These are among the projects that have been doing well in the six weeks of the "circuit breaker". The six top-selling projects are Treasure at Tampines, Florence Residence, Parc Clematis, Parc Esta, Kopar at Newton and Marina One Residences.
Mr Ismail is confident that 200 units could be sold in May as long as they are rightly priced. Developers sold 277 new private homes in April, a dive of 58 per cent from 660 in March.
In April, the top five selling projects' median prices ranged from S$1,208 psf to S$2,241 psf.
Looking ahead to June 2 when the circut breaker ends, Mr Ismail expects that for projects which were already launched prior to the circuit breaker, agents will continue to use virtual tours of the show flat to showcase the layout and design of the respective developments.
He also expects developers to give "star buy" discounts to help move sales, rather than offer a big drop in prices.
Singapore will lift circuit breaker measures from June 2 in three phases. But even after the circuit breaker is lifted, there are likely to be restrictions on opening show flats immediately. Hence, developers will still have to depend on conducting virtual show flat tours as part of promoting their projects, so as not to delay launches, he said.
"Eventually when restrictions are lifted, developers will have to go back to the old norms of opening the show flats, while confirming to guidelines of social distancing and proper crowd control and tracking.
"We do not expect developers to drop their prices hugely, mainly because current selling prices are so sensitively priced with low profit margins.
"However, we can expect developers to give 'star buy' discounts for some units or special discounts for certain stacks of the development, in order to continue the momentum of clearing some units during this period."
PropNex is the appointed agency of more than 90 per cent of projects in Singapore. Currently, it is marketing close to 100 developments in the republic.