Property Talk: A weekly column by S.C. Cheah
PRIVATE sector developers are be- coming more and more creative and aggressive in the manner in which they market their products.
All sorts of incentives are now thrown in to woo purchasers. Coupled with the government’s recent economic stimulus package, house buyers are seeing strong efforts to boost the property market.
Most of the current incentives are geared to help purchasers in their cashflow which will save them money and a lower entry level.
The freebies like free alarm system and kitchen cabinets are still there but the trend is more towards offering something more substantial not only in savings, but also help the property to appreciate in value. One of these incentives is the money-back guarantee.
Over the next two weeks this column will make a random survey of some of the developments, particularly in the Klang Valley, to gauge the response from the house-buying public and the types of housing packages.
Below are some of the developments and their packages:
·Kota Kemuning's SMILE Your Way Home Plan: SMILE stands for superb living environment, Make 6% returns on all cash payments, Interest on your loan progressive payments during construction will be fully reimbursed, Legal fees for SPA and loan agreement shall be borne by the developer and Easy and flexible payment method.
Introduced a few months ago, the financial package proved to be a big hit with house buyers. With current fixed deposit rates at around 3% per annum, buyers were delighted that they could earn 6% or about double the FD rate on their progress payments.
One of the two options under the plan allows buyers to pay only RM8,000 as confirmation deposit. They can then settle the loan differential sum in 12 equal monthly “interest free” instalments.
This is a big help as purchasers have more time to save and use their own money to pay part of the purchase price, thus taking less loan as well as delay the start of the drawdown on their housing loan. This translates into saving in loan interest.
The SMILE plan is applicable to the LCIC double-storey houses, Meranti terraced townhouses, The Lakes condominiums, Randa apartments and the Canal Gardens.
The plan’s success is reflected in the good sales of the Canal Gardens double-storey link houses, billed as the only canal-park residential development in the Klang Valley.
Set on 79 acres, a 1.4 km crescent-shaped canal with gardens will be linked to the Kota Kemuning's 2.6km Wetland Park, making it a continuous water feature and a pleasant retreat for residents.
There will be 602 units comprising four types of 2 1/2 and two-storey link houses. Three of the four types of Canal Gardens (22ft x 75ft; 24ft x 75ft; and 26ft by 90ft) have been launched. The 25ft by 80ft type has not been launched yet.
Hicom Gamuda Development Sdn Bhd senior manager (marketing and sales) Angela Tham said that about 200 of the 230 units launched had been sold since Canal Garden was launched less than two months ago.
Of this number 50 out of the 60 units of the 26ft by 90ft type launched (total 101 units) were sold within a month. About 50 units of the 24ft by 75ft type that were recently launched had also been sold.
She said there were plans to launch smaller semi-detached houses in Kota Kemuning.
Priced from RM700,000 they will cater to those who could not afford the Kota Kemuning Hills units. The smaller units will have about the same land area of 4,800 to 5,500 sq ft but with about 2,500 sq ft built-up area instead of the 3,300 sq ft in Kota Kemuning Hills.
l Bukit Rimau's RM1 Easy Home Ownership Campaign: Purchasers need only pay RM1 as down payment. Two banks will provide 100% financing to all qualified buyers.
The campaign was initially opened to purchasers of its Balau 2 double-storey superlink series, but in view of the good response, the developer Bukit Rimau De- velopment Sdn Bhd (a member of the Malton Bhd group) extended the campaign to all its completed residential units.
According to Bukit Rimau chief operating officer Steven Lim, 45 of the 66 Balau series have been sold since the launch about two months ago.
The scheme is simple and attractive as qualified purchasers need to borrow only 90% of the purchase price as they get 10% discount in the form of a credit note paid for them by the developer.
In addition, the banks offer free legal fees on the loan documentation, while the developer absorbs the legal fee on the sale and purchase agreement and stamp duty.
He said there were plans to offer new packages that would include a lower borrowing rate.
Meanwhile there's also good news for the residents as an interchange from the KL-Shah Alam Expressway (Kesas) is being built to link directly to Bukit Rimau.
·Bandar Puteri's zero interest during construction period for the Gardenia terraced houses: This mixed development by Malayapine Estates Sdn Bhd is near Kota Ke- muning. It is finding the going a bit slow for the recent launch of its freehold link houses.
Recent checks showed that about 60% of the 169 Flora double-storey terraced houses and only about 40% of the 228 Gardenia type had been sold.
Both types had been launched a year ago. Purchasers of the Gardenia will enjoy zero interest during construction period and subsidised legal fees.
Its marketing manager Andy Chua hopes that with the completion of four showhouses (two for each of the two designs) potential buyers will be able to see for themselves the quality of the workmanship and the 11ft-high ceiling and cornices.
He said the first two showhouses were for the Erica type (20ft by 75ft). All 164 units priced from RM193,800 each have been sold out.