Property outlook

September 4, 2008 | By Raymond Tan In Property |

Some developers have been quietly oiling their launch machinery in the past few weeks as they get ready for previews and launches after the Hungry Ghosts Month.

With the property outlook expected to worsen before it gets better, there may just be an incentive for some to launch their projects sooner - or wait it out till late-2009/2010.

Another consultant, Knight Frank executive director Peter Ow, said: ‘Whatever name you call it - preview, private invitation, etc, the aim is for developers to test the market. If the response is sufficient at the price they want, they’ll begin sales. If the response isn’t up to what they want, they won’t sell. As a developer, you don’t want to risk launching a project, selling a few units and getting stuck.’

A critical factor affecting developers’ launch decisions is pricing, given the bearish sentiment.

‘Pricing will be more realistic for fresh launches, but for projects released earlier, it would be difficult for established developers to trim prices without upsetting earlier buyers, especially VIPs,’ a seasoned property consultant said.

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