Now that you’ve had a chance to read our post on the new condo launch 2022 in Singapore, the next step is to make a decision about how much you are willing to spend on marketing.
As of now, we think it would be wiser for most companies to spend lesser than $3k on a marketing campaign. This is because most of the companies do not have enough funds and experience in marketing yet. We believe with more experience, they will be able to make more educated decisions on the amount of money they should invest.
In any case, there are some forces which need to be considered before making your decision:
1) What is your target market size?
A good rule of thumb is that if you have a target market size of 2 million people, then spending less than $3000 per month would be fine. If you have target market size less than 2 million people and want to launch a product or service in Singapore, then you must put at least $4000 per month (which can be increased if needed) into product and service marketing activities.
2) What is your budget?
This can vary from $3k-$10k depending on how much you want to spend for state-of-the-art product development (e.g.: soundproofing walls, foams etc.). But keep in mind that overspending will affect your budget for next year’s campaign as well as affect your profit margin in future years’ (as the cost of buying products ranges from 1% up to 4%). In our experience however, spending only 1/4th as much as you think will give you better ROI with less risk.
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3) What is your targeted user base?
The best way to get an idea is by conducting A/B tests between different versions of your promotional material and capturing data on conversion rates (i.e.: customers who consume your product or service). We recommend doing this when launching new condo projects or planning a launch campaign for existing projects: Because the variation in conversion rates may vary based on a wide range of factors such as age group, gender etc., it’s important that those factors are carefully determined before you attempt any A/B testing which may impact conversion rate results. The end result should always remain uniform though and ideally reflect what has been done last year and what’s been done this year (i.e.: posting older versions for two months after launch is usually
Brief history of the real estate market in singapore In summary: the most important thing is to keep in mind the following:
1. The OCR is a very well-established market which has worked for decades and is highly stable; it does not require any changes or updates to its pricing structure today or in future. There should be no need for you to re-invent the wheel here if you have been doing something similar in ocr since 1997. It’s time to stop fighting it and do something new instead! (or Umm… maybe just stop fighting it altogether?)
2. The RCR is not a mature market where there are a few established players that are widely respected by market participants (maybe even by investors as well). This will require significant attention from you from also preparing your pricing strategy and pricing strategies for competitors who may be entering this space later on.
3. Taking into account what’s already been discussed about markets: There should be no need for you to re-invent the wheel here if you have been doing something similar in ocr since 1997. It’s time to stop fighting it and do something new instead! (or Umm… maybe just stop fighting it altogether?)
4. Take care of timing and marketing opportunities during the launch phase – this is where they come up more because they are more likely to be more visible than other parts of your product development cycle (the sales cycle). Take care with them too – some are very difficult to achieve when there are competition right next door so don’t make them easy targets! We do recommend that you get your launch team planning annually so that there is continuity throughout your products lifecycle -and we also recommend making sure that there are strong channels for distribution information which can easily reach potential customers before launch ! On top of all this, make sure you leave yourself some room on short term costs – i.e., don’t blow out your first quarter expenses if things go bad early on! This seems like it would be easier said than done but when everything goes
4) The current state of the property market in Singapore
If you are planning to buy a new condo (and therefore making an investment), you’ll need to consider several factors, but one of the most important is whether or not you want to purchase a unit with a view of the city. Will you be doing short-term rentals? Do you want to build your family into the neighborhood? What kind of job will you do in the future?
Building your family into the neighborhood means that residents are already close neighbors, which is another thing that will help when it comes to choosing which unit to buy. It’s also good if they have similar interests or hobbies. You can find out more about this here: Singapore Property Map
If you are going for long-term rentals, this might not apply as much to you as it does if you are looking for a permanent place in town (depending on how much time and effort you spend on your vacation). If it’s just a temporary site, though, I think it is something worth considering.
The other really important thing to consider is what kind of job will occupy your time and energy in the future. If it’s working at Starbucks or somewhere similar, planning for short-term rentals won’t make much sense (unless there are good reasons for doing so). But if your goal is just to commit yourself full-time and live in town permanently like many people do, then renting out space will be very beneficial (and probably cheaper than buying it outright).
5) The trend in the property market
The below charts are a summary of the market trend for new condo launch 2022 in singapore.
Generally speaking, the property market in Singapore is the fastest growing, and the largest in Asia. The steady increase in the number of units, combined with an acceleration in land prices, has pushed new condo launch 2022 in singapore to $30 billion already (totaled up to $22 billion) so far this year, as compared with last year’s $11 billion (totaled up to $9 billion).
The below charts show a snapshot of this trend. The top line shows prices per square feet (psf) of condominium units sold across different regions (OCR, CCR and CCR). The middle line shows average prices over time for each region. It also shows how much the price has changed over time by adjusting for seasonality. It is important to note that these figures will be subject to change as developers follow their strategies for marketing and selling their unit portfolios. Also, it must be noted that data from different sources can vary slightly due to rounding errors.
In general there seems to be an upward trend in pricing over time across all regions except Singapore itself, which went flat between 2013-2014 (see below). This upward trend is not just driven by higher land prices: since 2007-2012 the number of households has more than doubled from about 8 million to more than 20 million. With an average price per unit ranging between S$4,200 and S$6,000 psf lately it seems that consumers are willing to pay a bit more for better quality housing at a lower unit cost on average — which is quite close to what they did back when they bought their first flat back in 2006-2007. But even though we expect it will slow down later this year because of lower land prices I do not expect it will peak any time soon as development pace accelerates rapidly after 2018 with one million units projected by 2030 (see below).
6) The difference between OCR, RCR and CCR
The average price of a new condo in the Central Region is $2,8xx psf. The average price for one bedroom apartments in the OCR is $1,9xx psf and $2,2xx psf for two bedroom apartments.
The price of a new condo in the CCR is roughly 60% – 70% higher than that in the RCR.
This is not because of any hidden hidden cost: The difference between the two regions is due to the fact that CCR has a higher density (and hence more units per acre) compared to that of RCR. The high density properties located within this region offer better value for money than those located outside it because they are located closer to where people want to live, and they are also less expensive than those located elsewhere.
That being said, pricing differences between different regions should be considered carefully when planning your new condo project. It’s important for developers to understand what factors will play an important role when comparing prices between different regions, as well as how each major factor will affect pricing (e.g., proximity vs density vs location vs unit mix).
Conclusion: new condo launch 2022
The marketing landscape for new condo developments in Singapore has been changing rapidly over the past few years, due to the growing awareness of living in urban areas and the desire for a more global society. This is reflected in the number of new condos being built as well as their price structures. The following chart shows you across different regions how much it costs to launch a new condo development, based on its size (i.e. # of units), location and type of construction, i.e. pre-construction (FAC), construction (including design) and construction completion (including site work).
This is not an exact science and I have highlighted some numbers that might not be 100% accurate, but they give you a rough indication of where you are going. Every developer should be aware that their market is changing as well — there will be other players trying to build condos in Singapore at some point in the future that don’t happen to have your brand or name on them yet — so we need to keep up with these changes as best we can.
You can find out more condo price: SRX Monthly Flash Report
