Case Study: Mayfair Gardens - Metrics Aren't Everything
Mayfair – one of the rare new launch condos where our metrics were proved wrong. But what was different about this property? Read on to find out!
We’ve learnt a valuable lesson marketing Lentor Modern - it wasn’t as easy as we thought. So, here are our takeaways from running this new launch condo!
Lentor Modern had a phenomenal take-up rate of 84% (508 out of 605 units) on the first day of its official launch.
According to the developer, Singaporeans made up 92% of the total buyers, while the remaining 8% were sold to permanent residents and foreigners.
The last project that saw more than 500 units being sold was Canning Hill Piers back in November 2021.
Despite its great sales, Lentor Modern ended up being a bit of a marring nightmare in the digital marketing scene.
So, here's what we've found and how you can do better.
After the 98% take-up rate of AMO Residence, the intense oversubscription left anxious buyers no choice but to opt for the next new launch.
This was where Lentor Modern came in.
Located approximately 2 km North of AMO Residences, Lentor Modern falls within the high in-demand residential area in the general Ang Mo Kio to Thomson line stretch.
The project was also one of the few new launch condos marketed in 2022.
The 84% take-up rate came as a surprise, considering Lentor Modern was one of the priciest Outside Central Region (OCR) condos. Even so, its units were snapped up like hotcakes.
So given the high demand, why was it difficult to market?
To put things in perspective, there were a total of 32,414 registered property agents in 2022. And since Lentor Modern was the few launches of the year, imagine all 32,414 of them fighting to sell that one property.
An epic battle.
The result? Having to spend almost 10x the cost-per-click(CPC) within the course of 6 months.
From April to September, ad costs multiplied exponentially from $0.75 to $7.50 per click.
At the time, we had 3 agents who were running a daily budget of $50. 2 agents started mid-July whereas 1 agent started mid-August.
Although it was generally not advisable to run a campaign just shy of 1-2 months to the launch date (17 September 2022), we proceeded according to our agents’ wishes.
Out of the 3 agents, only one was spared. He started the latest and gained a total of 6 leads, but at a high CPC of $7.50.
From this, we learnt that it was important to make strategic judgment calls, whether it’s based on data, gut instincts, or relationships with people, to minimize damages and derive the best possible outcome.
A project’s strategic location has a strong impact on buyers’ interest.
It’s what influences and impacts a real estate property’s future value.
For first-time investors or sharp-witted homeowners, looking for a great location is like looking for a hidden gem.
For Lentor’s Modern case, aside from being a short 4 mins walk to Lentor MRT, Lentor Modern’s focal point is its integrated mixed development with 96,000 sqft of commercial spaces, a 12,000 sqft supermarket, and 10,000 sqft childcare center.
We’ve compiled this into a general list of things to look out for:
By picking the right property to market, you can definitely attract the right crowd that would help you to clinch huge sales opportunities.
We’ve previously mentioned that Lentor Modern was one of the most expensive condos out there.
But in fact, it’s not far out of the norm.
Given that Singaporeans are getting wealthier, their higher purchasing and spending power makes owning a condominium highly desirable.
In 2021, CNA reported that the demand for very large-sized luxury condominiums has attracted many deep-pocketed investors with the means to buy bigger and pricier luxury homes. Out of the 339 condominiums sold to these investors, 74 of them cost over $10 million, with the remaining priced above $5 million each.
On top of that, many rich buyers from China are flocking to buy luxury Singapore condos, with 932 private units sold in the first eight months of 2022.
With strong sales performance from recent transactions in the post-pandemic property price boom, we can conclude that property buyers, local or foreign alike, are willing to pay for quality luxury condominiums regardless of its price tag.
So, what’s more to say for a comparatively reasonably priced condominium like Lentor Modern?
In a nutshell, it seems like million dollar housings are quickly becoming the norm, and are considered by most buyers as a good price accommodation that’s worth the investment.
When a condo has great press, it becomes a hot-selling commodity.
From Facebook, to Instagram, and even Tiktok - Lentor Modern ads were literally everywhere.
There were also full media coverages on the new launch in Straits Times, Business Times, and even articles from Stacked Homes, Edgeprop, and PropertyLimBrothers.
And when there is hype, there are sales.
A possible strategy to pick up for future projects would be to start your marketing early and when there’s great press. Then, exit the market quickly before competition becomes too expensive.
To sum things up, Lentor Modern had a high demand despite its price, which made it a very tricky project to market on Google.
Was the demand created due to a lack of projects at that time? We think it's possible.
But from what we have observed, based on cases of previous oversubscription like Kebun Baru Edge, AMO Residence and Lentor Modern - Ang Mo Kio region is a popular but underserved residential area.
Then, the question is, will upcoming Lentor Hill Residences show similar roaring success rates?
Well, only time can tell.
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SellMoreCondos (SMC) is a digital marketing agency for realtors that redefines new launch marketing. We use a systematic, data-driven framework to reduce the workload of agents and increase their profitability. If you need help with your Google Ads or landing page, get everything you need to excel at new launch lead generation at our e-shop or get in touch with us for more information.
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