Developers are divided on the merits of housing promotions, which boost sales but reduce profit margins. Pic: The Myanmar Times

LOCAL developers Naing Group, Landmark and FatherLand have all announced sales promotions for mid-October to mark the full moon of Thadingyut and the passing of Buddhist lent.

FatherLand Construction Company is offering until the end of October a 10-15 percent discount on apartments in five condo-miniums and three apartment blocks, which are currently under construction in Pabedan, Pazaungtaung, Mingalar Taung Nyunt and Dagon townships.

“We are offering a 10pc discount for those who buy one apartment and 15pc for two or more apartments before the end of the promotion. We are doing this as a special Thadingyut promotion,” said a FatherLand spokesperson. “Buyers can pay in five instalments: Twenty-five percent when signing the contract, another 25pc when construction begins, third 25pc when construction reaches the specific floor, 15pc when roofing and last 10 is due when the apartment is handed over to the buyers.”

Hlaing Tharyar-based Landmark has five of its Nawarat shophouses for sale at a 10pc discount for the two weeks follow-ing Thadingyut, on October 14.
“We are discounting five Nawarat shophouses worth K30 million [for Thadingyut]. Each two-storey building has a floor space of 960 square feet,” said company director U Zarni Myo Win, adding that the company is planning further promotions next year as more shophouses are completed.

U Kyaw Ye Min, marketing manager of Naing Group, said his company will hold promotion on all 16 of its downtown condominiums blocks, both finished and unfinished, beginning from the middle October. However, he said the discount percentage was yet to be finalised.

The period following Thadingyut is generally an active time for the real estate market. During Lent, which lasts for the three months from the full moon of Waso to the full moon of Thadingyut, many Buddhists observe a tradition of not moving house and the the passing of Lent brings many people back into the housing market.

But developers have mixed views on the merits of such housing fairs. Some say they can boost sales, but the reduced prices at which properties are offered can cut into profits.

U Zarni Myo Win, director of Landmark Construction said sales are sharply increased because of promotion fairs. “I can’t tell you the percentage, but sales rise sharply. If we sell the usual way it can take three months to make a sale, but with a promotion, it can be one month,” he said. “Within that short period sales are boosted, but the profit is thin. Usually, we’ll offer a 7 to 10 percent discount. We give discount sales twice a year, for two weeks to a month,” he said.

But Eiksietan Construction Company manager U Aung Myin said there could be drawbacks to discount sales. “When we did a promotion fair 10 years ago, we saw sales increase by 30 percent. But now we don’t hold them because the construction of fixed properties is a long-term investment, since property values increase over time. That’s why we don’t rush to get money to invest in another project, but let sales take place in their own time,” he said.

U Aung Myin added that housing promotion fairs were best for developers who want quick sales within a limited time, especially when the development was not well known. “My [company’s] Shwe Bon Thar housing project at Hlaing Tharyar, which we completed three years ago, consists of over 100 duplexes worth K40 million each. But sales are slow for lack of promotional activities,” he said. “To avoid such delay, promotion and advertising are necessary. Otherwise, the only people who know about the development are those who happen to pass it.”

He added that the discount offered and the duration of the promotion varied depending on the location, facilities and value of the property, and the number of properties available. But customers prepared to bargain could also receive a cash discount.

U Zaw Zaw, manager of Unity real estate agency said such sales promotions benefit both buyers and developers. “Without such fairs, customers don’t know what projects are going on and how much discount is being offered,” he said.
He added that most housing sales were organised to clear apartments left unsold during the pre-construction period.

“Most developers sell apartments before even breaking ground. But promotion fairs are held when construction is complete, so that the developer can promote unsold properties, as well as advertising new projects,” he said.