"Bare" EC/Condo unit, anyone?

By The Folks @PropTalk - January 3, 2015 No Comments

A report in BT today said that developers are cracking their brains for innovative ways to move their unsold units amid the sluggish property market.

One such has come up with the idea of shaving $25 - 45K off the usual selling price for its EC projects by offering the apartments bare, i.e. without interior fit-outs or floor finishing.

The discount is to attract buyers who have become price-sensitive as a result of the more stringent mortgage financing requirements.

But as one market analyst has pointed out, such "atypical marketing strategy" may only improve sales slightly, e.g. for those who are unable to get sufficient loans under the current financing cap. However, it may not gain traction with most other buyers as one of the draws of buying a new EC or condo unit direct from developers is that it comes well fitted out. So despite getting a discount for buying a bare unit, buyers of such will still have to fork out money for renovation, which in the end may negate the original savings.

Buying a developer's unit and being relieved of the hassle (and cost) of renovation is definitely a big plus. But the wife and I reckon that some buyers who are not constrained by financing may also find the idea of a "bare unit" attractive, as this gives them more freedom to "differentiate" their units from their neighbors. The key question is how much of a discount will incentivize this group to take up the option -  a $25 to 45K discount is definitely a tad low in our opinion.

Will you buy a "bare condo unit" from developer?

If so, how much discount will you expect compared to a fully-fitted unit? 



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