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Emerging Trend or Desperation?

Did you notice that advertisements by property developers on television (TV) are increasing? Especially during the Chinese New Year period of 2015? There used to be just one name a few years ago. This year, I have counted 5. Eco World, SP Setia, Mah Sing, R&F and Country Garden. If anyone saw more than 5, let me know. If advertisement attractiveness is the only reason to buy, out of these 5, I think I will buy Eco World. Haha. Of course some may prefer others because advertisement likeability is always a personal preference. Oh yeah, no need to ask. I own no properties from any of these 5 developers. Perhaps in the future. Of course there are a few big names missing from the top 5 above. Perhaps next year, we will see 20 different advertisements.
Is this an emerging trend? If this an emerging trend, I think the property prices may have to also be adjusted upwards once more developers jump on the band wagon. The bigger developers, by virtue of their gross development value (GDV) would be able to afford these grossly expensive advertisements but for the mid-tier to smaller developers, these TV affairs are very ‘painful’ especially if their TV advertisement has to be shorter, cheaper and less attractive and happen to be advertised at the same time slots as the bigger ones. Seriously, just let the bigger ones do it and I personally do not think TV advertisements are more effective than any other medias except that it gives the idea that the developer a good and premium branding.
Do you see this as an act of desperation? Especially coupled with the current slowdown in the property market? Perhaps they have felt the effects earlier due to their GDV size and just wanted to add another promotional avenue to all their existing medias? I have not yet personally read or heard of any acts of desperation though for some smaller players, I know that some of them have begun to offer very attractive discounts and packages. TV adverts are thus not an act of desperation in my opinion. Their GDVs happened to be huge and the usual marketing budget is able to pay for TV advertisements and they are just taking advantage of it.
As a buyer however, nothing beats the actual site visit to see with our own eyes and touch with our own hands. A key theme moving forward would always be affordability because the prices has risen way faster than income for the past many years and this cannot continue forever or the market may crash. As for TV advertisements, just enjoy them. Decisions to buy? Please do not make your final decision by referring to just a very attractive TV advertisement. Happy watching and Happy Chinese New Year!
written on 24 Feb 2015
Next suggested article: Properties in 2015? Tough times.

Property Investment always start with knowledge. Equip ourselves with more here.

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

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0 Responses

  1. I agreed with you also, This trend is likely to be desperation rather than emerging. It is getting more aggressive to promote their product out to market instead of passively approach manner, we will see how thing goes for next year : )

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