HOW TO SELL & MARKET CREATIVELY
IN THE CURRENT MARKET?
BY:
SARKUNAN SUBRAMANIAM
MANAGING DIRECTOR,
KNIGHT FRANK MALAYSIA SDN BHD
REHDA:
REGIONAL ECONOMIC & BUSINESS OUTLOOK
CONFERENCE 2017
Marketing Strategies of Selected Developers DEVELOPERS' STRATEGIES
Marketing Strategies of Selected Developers DEVELOPERS' STRATEGIES
Marketing Strategies of Selected Developers DEVELOPERS' STRATEGIES
SUNWAY PROPERTY
Sunway Property Certainty Campaign
Marketing Strategies of Selected Developers DEVELOPERS' STRATEGIES
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
MAH SING GROUP BERHAD
Lock & Roll Deferred Financing Campaign
Marketing Strategies of Selected Developers DEVELOPERS' STRATEGIES
“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 25th month
More than 400 residential and commercial units on offer under this
scheme which ended 31 December 2016
2017 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
SIME DARBY PROPERTY : “Big 5” Promotion For first time homebuyers and loyal customers
DEVELOPERS' STRATEGIES
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.
Marketing Strategies of Selected Developers
IOI PROPERTIES: Buy Now, Pay Later
SELANGOR DREDGING: Reside-and-Purchase (RAP) ‘Why rent when you can own within 36 months?
SP SETIA: 10:90 Scheme - Build-then-Sell (BTS)
DEVELOPERS' STRATEGIES
Deferred Payment • Up to 24 months to pay the balance of deposit and
differential sum / upon vacant possession (whichever is earlier)
• 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
• 10% down payment upon signing SPA • Balance 90% after completion of property (supported by
CCC)
Marketing Strategies of Selected Developers
TROPICANA CORP : ‘Tropicana 0% Interest Plan’
‘Just Bid It’
DEVELOPERS' STRATEGIES
‘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
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
IJM LAND: LifesHome Triple Insurance Protection Schemes, (HomeTIPS)
DEVELOPERS' STRATEGIES
• 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 2016.
• 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
MAJU HOLDINGS Maju Lease and Purchase Scheme (MLPS)
DEVELOPERS' STRATEGIES
• 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.
TITIJAYA LAND BERHAD
Exclusive Rewards & Privileges for Buyers
Marketing Strategies of Selected Developers DEVELOPERS' STRATEGIES
“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
UEM SUNRISE: Signature Selection Campaign/ Rendezvous in France 2016
DEVELOPERS' STRATEGIES
• 2-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)
DEVELOPERS' CURRENT
STRATEGIES
• 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
• Certainty
• Discounts
• Deferring Payment (Rent then buy included)
• Financing assistance
• Insurance
• Gimmicks/ gifts
DEVELOPERS' STRATEGIES
Yes, to an extent. Selected schemes have seen successes
with developers reporting higher/ improved sales.
Despite the various marketing strategies, the level of affordability remains low. But these strategies
are here to remain. A revolutionary reinvention is required
Are these strategies going to be sustainable?
Are these strategies effective?
5 COMPONENTS THAT MAKE-UP
COST/ PRICE
Land Costs / Prices
Construction Costs
Compliance Cost (Indirect)
Capital Contributions (Direct)
Financing Costs / Required Return
COMPONENTS THAT MAKE-UP COST/ PRICE
DEVELOPERS' CONSIDERATIONS
To address these costs:
REINVENTING STRATEGIES
Prefabricated Timber Framing Systems
Different quality/ cost packages
1. Addressing cost
Requires legislation changes
Panel subsidiary renovators – pass cost
Bare shell like in China/ Thailand: save costs to purchaser as not to pay and repay for renovation
2. Efficient design
3. Industrialised Building System (IBS)
4. Reinvent the product
HOW TO SELL & MARKET CREATIVELY IN THE
CURRENT BUYER’S MARKET
Steel Framing Systems
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
Demonstrate creativity / flexibility / adaptability in a fast moving digital world
Visuals, visuals, visuals – 1st thing that draws attention / video tours / drones
HOW TO SELL & MARKET CREATIVELY IN THE
CURRENT BUYER’S MARKET
Steel Framing Systems
5. Networking: Client contact – engage with a human
touch / repeat buyers A life-long habit – learn & interact Seek out & attend events that attract
target market – sales agents are never ‘off-duty’
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
HOW TO SELL & MARKET CREATIVELY IN THE
CURRENT BUYER’S MARKET
Steel Framing Systems
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
HOW TO SELL & MARKET CREATIVELY IN THE
CURRENT BUYER’S MARKET
Steel Framing Systems
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 product distribution to enable your campaigns to run smoothly
HOW TO SELL & MARKET CREATIVELY IN THE
CURRENT BUYER’S MARKET
Steel Framing Systems
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
HOW TO SELL & MARKET CREATIVELY IN THE
CURRENT BUYER’S MARKET
13. Track Record: Testimonials Zero defect / manage defects Good property management
THANK YOU
CONTACT US Knight Frank Malaysia Sdn Bhd
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