Some developers using 'ingenious sales tactic' to lock in home buyers

Credit Suisse noted that the trend was limited to projects such as Riverfront Residences.
Credit Suisse noted that the trend was limited to projects such as Riverfront Residences.PHOTO: ST FILE

URA adjusts monthly developers' sales figures to account for lapsed options to purchase

Faced with a slow residential market and competition from a multitude of new launches this year, some developers are reportedly adopting an "ingenious sales tactic" to lock in potential buyers who may not be ready to commit to their purchases, according to a report by Credit Suisse's equity research arm.

This has resulted in what it called "the curious case of the rising number of returned units" at some new launches after the July 6 cooling measures last year.

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A version of this article appeared in the print edition of The Straits Times on February 28, 2019, with the headline 'Some developers extending options to lock in buyers'. Print Edition | Subscribe