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(SINGAPORE) With all the hype about the high-end property market these days, one would expect to see lines of buyers snaking around showflats, just like the 'good old days' of the mid-1990s.

Scotts HighPark is the latest high-end development that is being privately previewed to a "select' group of buyers; and its developer CapitaLand says the project may not be publicly launched.

But this is not happening. One reason is that these property launches have become so exclusive, you need an invitation.

If you are lucky and very rich, you get invited to a private preview. If not, you can hope for an invitation to the soft launch. An official launch, if there even is one, is for ordinary people.

'People are now buying into a lifestyle and there are intangibles that you really have to sell on a more personal basis with a more intimate sales approach,' explains Ong Choon Fah, executive director of research at DTZ Debenham Tie Leung. And she adds: 'The more scarce something is, the more you want it.'

Perhaps what is generally not known about this new marketing strategy - where there may be several private previews and soft launches - is that it also allows developers to 'test the market'.

'Now there is more at stake and developers feel the need to do test marketing,' Ms Ong says, and with good reason.

'With the integrated resorts and Business Financial Centre coming up, they can see the upside potential of holding on.'

Scotts HighPark is the latest high-end development that is being privately previewed to a 'select' group of buyers; and its developer CapitaLand says it may not be publicly launched.

In the mid-1990s, the Real Estate Developers Association of Singapore (Redas) actually came up with a guideline for its members which stipulated that only 30 per cent of a new development could be sold through soft launches.

The context for the guideline was perhaps different, but a spokesman for Redas nonetheless said: 'The guideline you are referring to was a voluntary restraint agreed to by our members as a temporary measure to address the then heated market in 1996. As a matter of practice, Redas does not take upon itself to inquire on its members' pricing and marketing strategies.'

Ku Swee Yong, Savills Singapore director of business and residential, said: 'The guidelines given by Redas are for good practice. For certain projects, developers may feel that the guidelines are not so applicable, especially if they want to create an atmosphere of exclusivity.'

So far, Scotts HighPark has sold four units.

Saying that this marketing strategy is not new, Colin Tan, head of research at Chesterton International, said: 'The developer has to really know his market, as this method is effective only if you have a high conversion rate into sales.'

A more spectacular example of this new marketing strategy would have to be St Regis Residences by City Developments Ltd. Initial sales were done through private previews to high-net-worth individuals from around the world.

According to data from the Singapore Institute of Surveyors and Valuers' REALink system, it was the first caveat lodged on June 19 for a 1,507 sq ft apartment that set the widely reported record-breaking benchmark price of $3,030 per square foot.

Although a 3,757 sq ft unit was sold for as little as $2,159 psf on June 26, subsequent sales did see a 5,102 sq ft penthouse go for $2,901 psf or $14.8 million on July 7.

Exclusive viewings do seem to affect prices.

Quek Kwang Meng, head of real estate investments, Citigroup Private Bank (Asia-Pacific and Middle East), has arranged many such private previews for his high-net-worth clients. He says: 'Rather than have a public launch and put many units on the market, developers of high-end projects will release selective units. And if these get sold, the next batch of units will be priced higher.'

The significance of private previews and soft launches should not then be underestimated.

Joseph Tan, director of residential services, CB Richard Ellis, says: 'Many (developers) go to the extent of flying overseas, to Hong Kong and Jakarta to market (their projects) to foreigners. For some projects, developers might sell all units during the soft launch on the quiet, without going public.'

Negotiations at private previews are of course private, but Mr Tan says: 'Preferential pricing of units at previews are usually fixed at a certain percentage. Prices are normally non-negotiable.'

This is not always the case though.

Nicholas Mak, director of research and consultancy, Knight Frank, says there are instances where price lists are not made available, and in such cases, 'developers do have an advantage over the buyer'.

The aspect of new marketing strategies most pertinent to buyers is whether the 'hype' justifies prices.

Recently, Scotts HighPark also set a new benchmark for Scotts Road properties - $2,200 psf. The unit was bought by a foreigner.

On the other side of Newton Circus, Newton One by Lippo Group is selling for about $1,250 psf.

To Mr Mak, Newton One is not inferior in any way, 'but it is priced to sell'.

But the jury is out on how, if at all, test marketing and benchmarking affects prices. Jacqueline Wong, national director and head of residential at Jones Lang LaSalle, said: 'There is no research or empirical evidence to track how soft launches and private previews affect eventual prices, as they are very much driven by buyers' sentiment.'

On the prices set for Scotts HighPark, CapitaLand Residential Singapore chief executive Patricia Chia said: 'It is really a case of different strokes for different folk. Our marketing and pricing strategy depends very much on the profile and affordability of the homebuyers and type of the project.'

On whether the wide range of prices for properties in the same area might add to the volatility of the market, Ms Chia believes that: 'Differential pricing as a result of the inherent attributes of a project is not one of the factors contributing to price volatility.'