Condo VIP sales need clearer rules and limits to ensure transparency
There should be a cap on the units that can be sold via VIP sales before public booking starts.
Condominium developers are offering "VIP" sales to selected buyers, allowing them early access to purchase units ahead of the public. This practice raises concerns about transparency and fairness for regular buyers, especially when property agents and chosen individuals secure a significant portion of available units before general sales commence.
In one instance, a buyer cancelled a purchase at Blossoms by the Park to secure a unit in The Reserve Residences through a VIP sale, spending an additional $30,000 for the privilege. Property agents have reportedly bought up to 20 percent of units at some new condo launches, potentially limiting regular buyers' options and causing frustration when their desired units have already been sold.
Developers argue that early sales help them gauge demand, manage construction costs, and avoid penalties for delays. They also claim VIP sales reduce commissions paid to agents. While the practice is not illegal, the Council for Estate Agencies (CEA) is investigating whether it disadvantages regular buyers. Property agencies involved in the discussions with CEA emphasized the need to ensure that regular buyers are not disadvantaged and that agents adhere to disclosure protocols.
VIP sales are not unique to the property market; luxury brands also offer early access to selected clients for high-end products.
Written by urgent.news from Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
