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FANCY a condominium without having to pay conservancy fees for as long as five years?

This will mean a savings of as much as $19,000 during that period.

Sounds too good to be true?

Pictures: David Tan

Two developers have been dangling this carrot for the past month at potential buyers, hoping to entice them to take up a unit at one of their three projects.

And it seems to be working. Both developers have reported better sales.

But such gimmicks may not always work. (See report on facing page.)

Keppel Land is offering a five-year maintenance fee waiver for The Callista and The Elysia at Mar Thoma Road off St Michael's Road.

The offer began late last month. Both projects are 999-year leasehold developments and some residents have already moved in.

Another developer, Frasers Centrepoint Homes, is offering buyers a 30-month maintenance fee waiver for Lake Holmz, near Lakeside MRT station.

OTHER ENTICEMENTS

It is also offering a $33,000 interior design package, and free Electrolux household appliances for the 99-year lease project.

So far, more than 60 per cent of the 87 units at The Callista have been sold, Mr Albert Foo, Keppel Land's deputy general marketing manager for residential properties, told The New Paper on Sunday.

The conservancy fee for a two-bedroom unit (883 sq ft) is $228 a month, and $304 for a three-bedroom unit (1,100-1,300 sq ft).

Owners can save between $13,680 and $18,240 with the waiver. The waiver applies to two-, three- and three-bedroom plus study units.

According to its advertisement, the price of a two-bedroom unit starts from $438,000, while a three-bedroom unit costs $518,000 onwards. The price of a three-bedroom plus study unit starts from $628,000.

At The Elysia, 30 per cent of the 40 units have been sold so far, Mr Foo said.

The offer is for all units, which include a penthouse, and two- and three-bedroom units.

A two-bedroom unit costs $430,000 (with a monthly maintenance fee of $237) and a three-bedroom unit, $570,000 (with a monthly maintenance fee of $316).

The conservancy fee for the penthouse unit, which costs around $844,000, is also $316 a month.

Since the waiver was offered, a total of 10 units in both The Callista and The Elysia have been sold, Mr Foo said.

He added: 'We are offering this promotion for a limited period, probably for another month since it is doing so well.

'It will be appreciated because it helps to lower the financial burden of buyers, many of whom are HDB upgraders and first-time home owners.

'This scheme will be attractive to these buyers.'

He said the take-up rate has been encouraging and there are others on the verge of buying.

Was the promotion offered because Keppel Land were experiencing poor sales for The Callista and The Elysia?

Mr Foo said that was not the case, citing 'healthy' sales for both developments.

Keppel Land hasn't received complaints from owners who had missed out on the current maintenance fee waiver.

Mr Foo added: 'They have received other promotional offers earlier.

'For The Elysia, we gave the first 10 buyers a chance to win a Lexus LS200 worth about $100,000 without COE.

'For The Callista, we gave away around five New Zealand holidays. So, it's part and parcel of sales and promotions.'

Over in the west, buyers of units at Lake Holmz enjoy a 30-month maintenance fee waiver.

ERA Singapore's vice-president (project marketing) Doris Ong, said the 369-unit development had fewer than 20 three-bedroom (1,238 sq ft) units left unsold.

Each unit costs around $580,000 with a monthly conservancy fee of $264. So, a 30-month waiver means savings of almost $8,000.

Ms Ong declined to reveal how many units have been sold because of the offer, but would only say 'some units' have been sold because of it.

'It's a feel-good factor for buyers who are mostly HDB upgraders,' she added. 'It's definitely a sweetener to entice them to buy.

'With the interior design package and free appliances, all they need to bring is their clothes.'

A potential home buyer, who declined to be named, said he visited The Callista two months ago but wondered about the generous promotions.

The 32-year-old, who works in the finance industry, said: 'If a property needs to use such methods, then maybe potential buyers should think more carefully as the property may not have been attractive enough to buyers without the offer.

'But I do find the offer attractive and am seriously considering it.'

CONSERVANCY fee waivers are attractive but they may not work, said Knight Frank's director of consultancy and research Nicholas Mak.

He said the fee waiver was an unusual gimmick as developers usually give discounts like absorbing stamp duties or giving furniture vouchers.

Whether the sweetener will work depends on the final selling price of the unit, which is ultimately what Singaporeans look out for, Mr Mak said.

The waiver offers for The Callista (above), The Elysia and Lake Holmz are not transferable. That means only the first buyer enjoys the waiver but not the person he sells it too.

Said Mr Mak: 'If it's transferable, it will be more attractive.

'The first buyer, who does not live there for the full five years, may be able to demand a higher price for his unit if the second potential buyer can also enjoy the waiver.'

But potential buyers for the three developments may find one aspect of the offer tempting.

They can choose to have the total amount of the fee waiver deducted from the price of the unit, said Keppel Land and ERA.

Said Mr Mak: 'That's very good. If I were a buyer, I would choose this option as it would then be an outright discount.

'Some buyers don't want any frills so they spend less cash, use less CPF and have a smaller bank loan to service.'

ERA Singapore's assistant vice-president Eugene Lim, 39, said such promotions are targeted at HDB upgraders as every cent they save means a lot to them.

'It's not entirely new, but it is a good way to entice buyers to buy,' he said.

'You just move in and don't have to pay conservancy fees for five years so it's very attractive.'

He added that developers would also not want to hold on to unsold units for too long as they would be burdened with the maintenance fees and property tax.

He said: 'So, the faster they can sell these units, the less their holding cost will be, which means they don't have to pay the property tax and the maintenance fees.'

But such sweeteners do not guarantee success.

In February 2004, The New Paper reported that a developer offered a free Nissan Sunny to every condo buyer for a project in the east. Fewer than five people opted for the cars between October 2003, when the offer was launched, and February 2004.