VIP sales at condo launches under scrutiny

“One area that CEA had engaged the industry on was regarding sales practices at new condominium launches, arising from public feedback on this matter. We note that priority access is a private commercial decision by developers, which could involve buyers besides property agents, and does not contravene existing rules and regulations,” added the spokesman.

PropNex chief agency officer Eddie Lim said any priority access for salespersons is generally a market-wide practice and depends entirely on the developer’s discretion.

Both he and ERA Singapore key executive officer Eugene Lim said CEA did not engage their agencies on the matter.

Such VIP sale arrangements typically allow selected buyers – for example, relatives or business associates – to book units before the main public booking day.

On the official public booking day, a sales board shows which units have been sold during earlier phases and which are still available, said OrangeTee’s Khoo.

Lim of Propnex said developers generally ensure that a good selection of units, including lower-priced ones, remain available for the public launch.

But one agent familiar with new launches, who spoke on the condition of anonymity, said some developers are “very relaxed” about who gets placed on VIP or priority lists.

“Sometimes the VIP list can be very long. To me, it’s unfair to the regular buyers as they would only find out on booking day that the units they want have already been taken,” he said.

Another agent, who also asked not to be named, said such arrangements may drive sales by creating a Fomo (fear of missing out) effect among ordinary buyers.

“When buyers see so many units sold on the display board on booking day, they would feel the pressure to act fast,” he said.

The agent added: “For developers, selling units quickly reduces holding risk and marketing costs. Developers also save on commission when units are not sold through agents.”

Khoo said his agency has safeguards to manage potential or perceived conflicts of interest. These include mandatory written disclosure for agents buying a unit in a project they are marketing.

In addition, modern launch bookings use centralised digital balloting and queuing systems which help to prevent manual queue-jumping, backdating, or unauthorised unit blocking, he said.

He gave examples of how priority arrangements might work for upcoming launches under its purview.

For Lentor Gardens Residences, only multiple units purchasers with a proven first-tier relationship – such as a mother and son buying one unit each – would qualify for priority arrangements.

For Dunearn House, priority access would be given to those buying multiple units, as well as loyalty clients who had previously bought from the developer.

A spokesman for Frasers Property, a joint developer for Dunearn House, said: “Depending on the project, priority booking arrangements may form part of our planning ahead of the public launch.

“Such arrangements are intended to support an orderly sales process, while ensuring that prospective purchasers continue to have a meaningful selection of units available during the public booking phase.”