Developer matters in buying a property

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My personal belief in choosing a property is based on Price, Developer and Features in this order. Of course, the location should not be somewhere in the middle of a dessert. Price must be key because the best developer (hard to say which) will not be able to save you if you bought a super over-valued property in the first place. Then comes Developer if the price is right because only a good developer will complete the project on time and as per what they promised. (most of what they promised, usually). Then, we come to all the other creature comforts like infinity pool for everyone, an awesome sky garden for the kids and parents and even yoga decks for the wife and more. Let’s listen to what prominent real estate personalities are saying about property developers.

Article in thestar.com.my . KGV Property Consultants executive director Samuel Tan of Johor is confident with smaller developers in boutique developments during a property market slowdown. He said, “They are not saddled with high holding costs and the need for urgency of sales.” He added, “Smaller developers are involved mainly with stand-alone service apartments and shop offices. Even then, these are few and far between. We also note that smaller developers are land-banking for niche developments or for future use.”

Henry Butcher chief operating officer Tang Chee Meng says that smaller developers do not mean that they are less experienced. He shared that there are many small boutique developers who are children of established developers who decided to strike out on their own. He added, “Or they could be contractors, unhappy with their margins, they decided to venture out on their own. Or they could even be employees of developers who seize the challenge when that opportunity came. Or it could be land owners themselves. Some of them may have expertise, but not the resources, so they enter into a joint venture.” Tang also shared this good advice. “Check their track record, if they have one. Do they have the experience, the financing capacity. If a company has been building affordable housing and then develops a KLCC project, this calls for caution.” Article in thestar.com.my

I have personally bought projects from small developers and those usual names too. I think whether the developers deliver to what they promised will also depend on the price which we are paying too. For example, one developer pricing its products 15% below everyone else in the same location and buyers flocked to buy and expect them to deliver at the same quality as all the other projects within the same location? In the end, the quality of the product will have to be compromised because the profit margins cannot be too low that the developer finds it not financially rewarding at all to do it. Remember, the cost of cement, land and even salaries of workers do not differ so much that the SAME project could be sold at double digit discounts UNLESS the quality of items are different. Happy buying.

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