The prime time for selling first-hand properties has been coming

After the Lunar New Year holiday, developers have continuously been launching soft-selling activities of new projects so that they can assess the market sentiment for their projects that are ready for sale. Based on the current market conditions, developers must employ sophisticated sales strategy to overcome their competitors. In order to increase their winning possibilities, they must act swiftly rather than to be the market followers. If not, they will not win the sales war in this sluggish market.

Developers can no longer set the so-called reasonable selling prices by simply adding profits to the costs. If they want to win, they must not only forecast the sales strategy of the other new properties but also examine the transactions prices of the newly built second-hand properties in the same district.

If the transaction price of a new-built second-hand property is worth HK$ 10,000 per square foot (psf), the opening sales prices of the first-price property in the same district should be lowered by 10% to HK$ 9,000 psf to ensure that the first batch of units for sale will be sold out quickly. Then the second batch of units for sale will have a better chance of having a little appreciation in prices. However, the quickness of sales plan is the essential factor to beat competitors, and it also prevents other competitors from adopting a similar low-price strategy to grasp the scarce customers.

The stock market has been rebounding recently, and the market sentiment has also improved. Therefore, developers must seize this opportunity to launch new projects in this good vibe. Otherwise, it will be difficult to push sales of the new projects and get a good sales record when the stock market falls again.

If a developer launches a project at an ultra-low price in the near future, it is estimated that it will attract users to enter the market. Even if a developer creates a hot-selling project, it should not have an overwhelming feeling of happiness by the short-term victory. Indeed, the state of oversupply of the new projects does not change fundamentally, and the market is still short on buyers. In fact, the market is not returning to an upward trend in the near future. Because there are still too many supplies and too few customers. A hot-selling project appears, the active market can only last for two or three months at most. Therefore, the time for developers to sell their properties will be limited this year.