Condo VIP sales need clearer rules and limits to ensure transparency

SINGAPORE – For one private home buyer, getting into the VIP sale queue for the launch of a condominium was worth walking away from a deal and forfeiting nearly $30,000 to secure a unit in another development.

He had earlier committed to a unit at Blossoms by the Park in Buona Vista but later cancelled the purchase, so that he could buy what he considered a better unit at The Reserve Residences in Bukit Timah through a VIP sale arrangement.

To him, the logic was simple. This was a $2.4 million purchase, likely one of the biggest financial decisions he would make. If early access gave him a better chance of choosing the best unit within his budget, then being among the first group of buyers mattered.

His experience shows why VIP sales at condominium launches are difficult to dismiss outright. For buyers who qualify, early access can feel valuable, even rational.

But those left outside the priority queue may question the fairness of the public booking process, especially when a large portion of units has already been sold before ordinary buyers get their pick.

The issue came under scrutiny after property agents reportedly bought up to 20 per cent of units at some new condominium launches before public sales began.

When developer Sim Lian Group launched Emerald of Katong in November 2024, agents bought 173 of 846 available units – about 20 per cent of the project.

The figure does not include other forms of VIP or early-stage sales to selected buyers, which would likely have raised the overall share of units sold early.

Between September 2024 and October 2025, property agents purchased 635 units through priority queues – around 4.2 per cent of all new private homes launched in that period, The Business Times reported in December 2025.

The Council for Estate Agencies (CEA) subsequently engaged property agencies about the practice of VIP sales and priority bookings at new private home launches, The Straits Times reported in July.

The concern is not that such arrangements are illegal, but whether they leave regular buyers at a disadvantage, especially when property agents and selected buyers get early access.

Two property agencies told ST that the discussions with CEA centred on ensuring that regular buyers are not disadvantaged, and that property agents who wish to buy units adhere strictly to disclosure protocols.

A veteran agent, who has been in the industry for more than 30 years and has handled numerous condo launches, noted that in a 500-unit development, a buyer typically can afford anything among 30 per cent of the units with his or her budget.

So if 20 per cent to 30 per cent of the development has already been sold before public booking begins, that buyer’s real choices may be sharply reduced, he said.

Serious buyers would have spent time visiting the showflats, engaging with banks to check their loan eligibility and preparing their cheques before the launch. Imagine their frustration when they find out that the units they had been eyeing have already been taken.

VIP sales have long been part of the property market. Developers have legitimate reasons for wanting them.

Developers take on huge risks when they pay large sums for land upfront. They have to manage rising construction costs and market uncertainty. They also face deadlines to complete and sell the units, or face penalties from the authorities.

Hence, early sales help developers to assess demand and allow them to fine-tune their pricing before launching the rest of the units to the public.

VIP sales also allow developers to save on commissions paid to property agents.

Take a $2 million unit.

A 2.5 per cent commission payable to a property agent for selling the unit works out to $50,000. If 20 such units are sold during VIP sales without agents’ involvement, the savings could amount to $1 million.

This helps to explain developers’ decision to give early access to their VIP lists, which could include business associates, previous buyers, bulk buyers and even property agents.

VIP sales can also create a fear of missing out.

On the official public booking day, a sales board shows which units were sold during earlier phases and which are still available.

When buyers see many units already sold, they may feel the pressure to act quickly. They may worry about prices rising, or that the remaining units within their budget will be gone if they hesitate.

In a hot market, early VIP sales are not just a private arrangement between developers and selected buyers. They can shape market sentiment and affect prices.

Then there is the question of whether property agents marketing the project should be allowed to buy units ahead of the public.

Property agents are supposed to act in their clients’ interests. If they have prior access to project information, pricing and buyer sentiment, should they also be allowed priority access to buy units before their clients do?

Are they acting as salespersons, or as buyers competing with their clients who are still waiting for public booking to begin?

The issue is not whether agents should be barred from buying private property. They are entitled to buy homes like any other buyer.

It is also the prerogative of developers to give their VIP clients and agents first dibs and discounts, and decide how they want to reward certain groups of people.

So why, then, has this become an issue now?

Prices of new condo launches are much higher, so buyers are more sensitive to having limited options. A missed unit can mean having to stretch further financially or accept a less ideal unit.

There is also greater public awareness of conflicts of interest and consumer protection. When property agents buy a sizeable share of units in some launches, the practice becomes harder to ignore.

VIP sales are not unique to the property market. Luxury brands also hold such sales for their preferred clients, giving them early access to handbags, watches and jewellery. Car dealers may also offer priority access to popular models.

But property is different. A handbag or car may be expensive, but a home is often the largest financial commitment many buyers make.

It involves taking out a mortgage, using their Central Provident Fund savings and paying thousands of dollars in stamp duties.

That is why clearer rules are necessary.

VIP sales need not be banned outright. Developers should still have some flexibility to manage their commercial risks and reward their loyal customers.

But there should be a clearer definition of who qualifies as a VIP. If the category is too broad, VIP sales become little more than an early public sale for those with the right connections.

There should also be a cap on the number of units that can be sold before public booking begins. Agents involved in marketing a project should join the public queue.

If early access is valuable enough for a buyer to give up almost $30,000, then the rules governing it should be made clearer.