REHDA: REGIONAL ECONOMIC & BUSINESS OUTLOOK CONFERENCE 2017

Transcription

1 REHDA: REGIONAL ECONOMIC & BUSINESS OUTLOOK CONFERENCE 2017 HOW TO SELL & MARKET CREATIVELY IN THE CURRENT MARKET? BY: SARKUNAN SUBRAMANIAM MANAGING DIRECTOR, KNIGHT FRANK MALAYSIA SDN BHD

2 Marketing Strategies of Selected Developers

3 Marketing Strategies of Selected Developers

4 Marketing Strategies of Selected Developers

5 Marketing Strategies of Selected Developers SUNWAY PROPERTY Sunway Property Certainty Campaign Guaranteed Loan 12:88 plan Buyer pays 12%, Sunway provide loan of up to 88% at vacant possession (from internally generated funds) Campaign period: 29 March 30 September 2016 Applicable to participating residential & commercial projects Deferred Payment Initial down payment from 3% Zero payment for 12 to 24 months from launch date Applicable to new launches Voluntary Exit Plan (VEP) Option for buyer to withdraw from SPA in event of employment termination

6 Marketing Strategies of Selected Developers MAH SING GROUP BERHAD Lock & Roll Deferred Financing Campaign Lock in Buyers can first lock in a unit with a RM10,000 booking fee Roll Buyers can then roll out their cash for other priorities or investment purposes Scheme makes it easier fro buyers to own a property that is completed Requires minimal monthly repayment for the first 24 months Buyers to pay interest on their loan for the first 24 months and the full instalment will only begin from the 25 th month More than 400 residential and commercial units on offer under this scheme which ended 31 December Chinese New Year Bonanza: cash rebates starting from RM888 up to RM18,999 in addition to any other sales packages offered for selected Mah Sing properties. Promotion ends 28 February

7 Marketing Strategies of Selected Developers SIME DARBY PROPERTY : Big 5 Promotion For first time homebuyers and loyal customers 5 townships ALYA Kuala Lumpur; The Véo in KL East; Castilla, Siphonia and Siphonia 2 in Chemara Hills; Saujana Impian s The Brymwood and Villa Safira and Planters Haven. Promotional benefits offered via the Big 5 promotion include: Discounts ranging from five percent to 10%, upfront PRIME or double PRIME discounts, One year free Astro subscription package Promotion period Feb to 31 May 2017 Potential consumers may also opt for Sime Darby Property s Chinese New Year RM8,888 rebate on the 10% initial payment, which ends on Feb 28. The rebate is applicable for over 1,500 residential properties across Sime Darby Property s townships.

8 Marketing Strategies of Selected Developers IOI PROPERTIES: Buy Now, Pay Later Deferred Payment Up to 24 months to pay the balance of deposit and differential sum / upon vacant possession (whichever is earlier) SELANGOR DREDGING: Reside-and-Purchase (RAP) Why rent when you can own within 36 months? 5% down payment and move in immediately Loan differential to be settled by up to 36 months in rental and balance via bank loan at the end of 36 months Applicable to selected projects SP SETIA: 10:90 Scheme - Build-then-Sell (BTS) 10% down payment upon signing SPA Balance 90% after completion of property (supported by CCC)

9 TROPICANA CORP : Tropicana 0% Interest Plan Zero Interest, Zero Worries 0% interest rate on instalments for up to 24 months Low Down Payment (from as low as 1%) Zero progressive payments for up to 24 months Campaign period: 21 October to 31 December 2016 Just Bid It Digital / online campaign Opportunity for bidders to put a price tag for the property they are interested in at the lowest price Floor price set by developer Applicable for selected units within selected projects Campaign ended 20 May 2016

10 IJM LAND: LifesHome Triple Insurance Protection Schemes, (HomeTIPS) A collaboration with Allianz Life Insurance and Allianz General Insurance Co to underwrite three insurance schemes for 36 months from the date of signing of sales and purchase agreement at no additional cost. For direct purchase of residential project between RM300,000 to RM2,000,000 with IJM Land from 19th August to December The three insurance schemes are: Unemployment Benefit: covers cases of involuntarily termination from of employment due to economic reasons. Group Term Life Scheme: covers financial benefit paid out in the unfortunate case of death or total permanent disability Personal Accident Scheme: covers financial benefit paid out in the unfortunate case of death or total permanent disability

11 MAJU HOLDINGS Maju Lease and Purchase Scheme (MLPS) For the development of Maju Kuala Lumpur Sungai Besi. During construction period: Low booking instalment with payment option - RM300 monthly fee during the construction period of 3½ years, to be saved on purchaser s behalf for future utility fees, legal expenses and maintenance bills. Upon completion: The property price will remain the same during the construction period and carry through for another 5-year term after completion with two options Option A: Rent the unit with RM2,000 monthly rental throughout the following five years. Option B: Purchase the unit by signing the sales and purchase agreement at the original price.

12 Marketing Strategies of Selected Developers TITIJAYA LAND BERHAD Exclusive Rewards & Privileges for Buyers Referral Cash Rewards Buyer get Buyer (BGB) incentive programme: cash referral fee Buyer Rebate Program BRP programme: get additional cash rebates / discounts when you purchase your next property from Titijaya Exclusive Invites Exclusive invites for private events for Titijaya buyers Exclusive Previews Exclusive previews for the latest Titijaya properties in the market

13 UEM SUNRISE: Signature Selection Campaign/ Rendezvous in France month campaign held in 2015 (1 September 31 October 2015) Applicable to selected projects Buyers of projects eligible to participate in lucky draw RM2 million worth of prices (cars and holiday vouchers) Campaign period: 1 April 31 May 2016 Applicable to selected projects Campaign cost: RM2 million (all-expenses paid trips to UEFA Euro 2016 matches and car)

14 DEVELOPERS' CURRENT STRATEGIES Certainty Discounts Deferring Payment (Rent then buy included) Financing assistance Insurance Gimmicks/ gifts Focus on existing products (unsold stock) Smaller size product(s) to keep end pricing attractive Affordable homes (depending on the area) Addressing first-time homebuyer s financing issues Selling a better lifestyle, one that they cannot afford right now i.e. fast forward future

15 Are these strategies effective? Yes, to an extent. Selected schemes have seen successes with developers reporting higher/ improved sales. Are these strategies going to be sustainable? Despite the various marketing strategies, the level of affordability remains low. But these strategies are here to remain. A revolutionary reinvention is required

16 DEVELOPERS' CONSIDERATIONS COMPONENTS THAT MAKE-UP COST/ PRICE To address these costs: Land Costs / Prices Financing Costs / Required Return Construction Costs 5 COMPONENTS THAT MAKE-UP COST/ PRICE Capital Contributions (Direct) Compliance Cost (Indirect)

17 REINVENTING STRATEGIES 1. Addressing cost 2. Efficient design 3. Industrialised Building System (IBS) 4. Reinvent the product Prefabricated Timber Framing Bare shell like in China/ Systems Thailand: save costs to purchaser as not to pay and repay for renovation Panel subsidiary renovators pass cost Requires legislation changes Different quality/ cost packages

18 HOW TO SELL & MARKET CREATIVELY IN THE CURRENT BUYER S MARKET 1. Be the go-to expert: Be known as a thought-leader who provide in-depth market knowledge Be an educator on design trends / market cycles Be a facilitator or multi-skilled single point of contact 2. Collaborative partnerships: Brand association (auto, retailers, etc.) luxury, prestige, quality Raise profile (company & agent) attract / share a target audience 3. Go Digital: Online / mobile embrace user-friendly technology to advertise your property and services Steel Framing Systems Demonstrate creativity / flexibility / adaptability in a fast moving digital world Visuals, visuals, visuals 1 st thing that draws attention / video tours / drones

19 HOW TO SELL & MARKET CREATIVELY IN THE CURRENT BUYER S MARKET 4. Create a buzz: Social media highlight USP s / spark investor interest Articles, interviews & media exposure can garner plenty of new interest & improve project awareness 5. Networking: Client contact engage with a human touch / repeat buyers A life-long habit learn & interact Seek out & attend events that attract Steel Framing Systems target market sales agents are never offduty

20 HOW TO SELL & MARKET CREATIVELY IN THE CURRENT BUYER S MARKET 6. Client Database: Consistent exposure of branding to dominate mind share 7. Price Right: Study market conditions carefully to understand what price tier will enable you to achieve your desired speed of sales 8. Hire Right: Your sales team should be an ideal mix of mostly younger members with a minority of senior ones selling requires energy and creativity (youth) while direction / strategy comes easier with experience Steel Framing Systems

21 HOW TO SELL & MARKET CREATIVELY IN THE CURRENT BUYER S MARKET 9. Outsource Right: Even the largest of developers do not have access to clients in various regions and countries. Work with agencies and co-operate with them to expand your marketing reach. 10. Budget Right: Campaigns can run flat if not budgeted for properly. Focusing too much on the launch may burn your margins in a slow market embrace digital and other non-traditional forms of advertising plus Steel Framing Systems product distribution to enable your campaigns to run smoothly

22 HOW TO SELL & MARKET CREATIVELY IN THE CURRENT BUYER S MARKET 11. Innovate: Stand out from the competition and keep trying new strategies For e.g. introduce non-traditional payment plan such as build-then-sell; use virtual reality systems in place of scale models at sales gallery etc. some of these may click and others won t but many will serve as buzz-worthy elements for your brand 12. Right Product: Create a brand or niche product category, yet broad in different locations Market positioning sell an idea / lifestyle, not a house Steel Framing Systems

23 HOW TO SELL & MARKET CREATIVELY IN THE CURRENT BUYER S MARKET 13. Track Record: Testimonials Zero defect / manage defects Good property management

24 THANK YOU CONTACT US Knight Frank Malaysia Sdn Bhd Kuala Lumpur HQ Suite 10.01, Level 10 Centrepoint South Mid Valley City Lingkaran Syed Putra Kuala Lumpur T: (603) F: (603) Penang Branch Unit 3.08, Menara Boustead Penang No. 39, Jalan Sultan Ahmad Shah Penang T: (604) F: (604) Johor Branch Unit 3A-1, Level 3A, Bangunan Pelangi Jalan Biru, Taman Pelangi Johor Bahru T: (607) F: (607) Sabah Branch Unit No. P1/L/72/3A, 4 th Floor, Block 72 KK Times Square, Kota Kinabalu Sabah T: (60) F: (60)