With the slowdown in home sales, property developers and agents are trying to boost buying interest by offering rewards such as cash vouchers, lucky draws and holidays.
One of them is property developer Wing Tai Holdings, which is holding a promotion at its Ascentia Sky project in Alexandra View.
According to The Straits Times, those who buy two-, three- or four-bedroom units will get up to $10,000 in rebates or four airline tickets for a winter ski trip in Japan, after they exercise the option to buy the unit.
About 20 tickets have already been given out since end-October, said an agent who spoke to The Straits Times.
Nearly 80 percent of the 373 units at the development have been sold, with prices for a 1,012 sq ft two-bedroom unit starting at $1,478 psf or about $1.5 million.
Mr. Colin Tan, director of research and consultancy at Chesterton Suntec International is sceptical if these strategies will work.
He said that while this type of strategy provides a “perception of value for money”, it will likely have a limited impact on home buyers since such gifts have low value when compared to a condo unit’s sale price.
However, property agencies said offering promotional incentives creates a distinctive brand image, increases agent recruitment and sets them apart from the competition.
For instance, Black Diamond Real Estate Group, which is marketing Onan Suites in Onan Road and iSuites in Marshall Road, is encouraging its agents to come up with “fresh ideas” to sell its projects.
About 20 percent of its 380 agents are offering promotions including lucky draw opportunities for buyers to win consumer electronics like washing machines and LCD television sets.