http://www.straitstimes.com/Money/St...ry_813702.html

Far East dangles 'club with condo' deal

Free club membership for buyers of Seastrand's remaining units

Published on Jun 22, 2012


BUY an apartment and get a free country club term membership worth more than $16,000.

Developer Far East Organization recently dangled this offer to tempt home hunters to buy a unit at the upcoming Seastrand condo.

Property consultants said developers may be using promotional moves like this to clear unsold stock before more homes hit the market, posing more competition.

Far East is offering a nine-year term membership at Seletar Country Club, as well as five-year condo maintenance fee absorption, for those who buy three- or four-bedroom units - the only sizes left.

This promotion, publicised in advertisments and mailers, comes even as the 473-unit project at Pasir Ris posts a healthy take-up rate, with 388 units sold to date.

Units sold in May achieved a median price of $956 psf. The condo was launched last year and is likely to be ready by 2014.

A spokesman for Seletar Country Club said term memberships cost $1,800 a year. A nine-year membership costs $16,200.

Unlike ordinary lifetime club members, term members do not pay monthly subscription fees. But they cannot vote at the annual general meeting or use the golf course on weekends, for instance.

The membership plus the maintenance fee absorption - worth about $15,000 for five years - translates into a discount of about 3per cent on a $1 million unit.

Earlier, it was reported that Far East is giving a 2 per cent 'celebratory discount' this month for various projects, to mark a sales record. But that cannot be used together with this promotion.

Property experts The Straits Times spoke to said it is common for developers to run such promotions from time to time.

Holding onto unsold stock could be risky, as developers face market changes and competition from new projects, they said.

In this case, Far East might be trying to raise more awareness of Seastrand, said Mr Lee Sze Teck, Dennis Wee Group's senior manager of research and consultancy.

He said the project may have been overshadowed by other pending condos like Sea Esta and Ripple Bay, launched after Seastrand.

But it is unlikely developers would cut prices if plenty of units have been sold, as this could upset earlier buyers, he said.

Still, PropNex chief executive Mohamed Ismail noted that 'nothing comes for free', and that developers could have factored the discounts into the pricing.

He warned such offers could trigger a freebie war among developers, which could end up as a disservice to buyers who might have no use for some of the freebies.

'At the end of the day, it's better to be more price-sensitive... buyers will prefer it if you can minus all the freebies and sell it cheaper,' he said.

Recently other developers have ramped up marketing efforts.

For instance, Flo Residence is dangling 18 Volkswagen cars to be given away in a lucky draw for buyers. The project by Capital Development and ZACD Investments was launched in May; the lucky draw starts next month.

High-end condo Paterson Suites recently offered a guaranteed 5 per cent rental yield for four years.

Back in 2010, one sales team for the Lumiere threw in a free iPad with every apartment sold.

Property investor Susan Tan, in her 30s, admitted that she was quicker in deciding to buy a unit at Flo Residences after finding out about the lucky draw.

But that was only an incentive and not a 'major factor'. The condo's location and facilities were more important, she said.

'To me, it's just an additional bonus... it is definitely not the sole decision maker. As an investor, I still have to take care of my tenants by choosing a unit based on its attributes,' she said.

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