Monday, July 19, 2010

Show Units: Misuse of the Building Budget

By Nathaniel Rhine

It is interesting to note that almost every property developer and architect would like to build a sample unit, or show unit of the project that they are in the process of developing. From the outset it appears to be a wise decision to produce a show unit for it may assist in the sales of the units, be they townhouses, semi-detached houses, terrace house or even bungalows. But in reality, is that truly the case?

First, one must ask what is the purpose of building a show unit? Is it to encourage potential buyers/investors to part with their hard earned money and place it in owning a building?

I am of the school of thought, shared with an associate of mine, who share the view that show units are dead end exhibits. Yes, they serve the purpose of displaying what the finish product will look like, but in reality it is not your unit, if you were to purchase one. Usually, the show unit is well decorated with the latest furnishings, carpets, paintings, light fixtures and the list goes on. Nine times out of ten, it may not even be the styles of interiors that you may fancy.

The grand launching of the project may take place on the weekend simply because that is the time most people are available to view the show units. After the viewing, how many people actually would come again to view the same show unit? Not many if any at all. Dead end exhibit. End of the show.

Why not do away with the show unit concept all together. Why not invite the public to view the unit while it is under construction. Crazy idea? Due to the nature of any construction, be it a house, a school or any building type, construction takes place slowly and gradually. For example, the first phase of construction may be the digging of the foundation. Yes, it is a messy phase of construction but yet it is a process that could be viewed by potential buyers. Still it could be viewed. Why not provide a clean area not too far away from the construction site where potential buyers could actually view the earthworks process. A few weeks later, invite the same potential buyers and others to view the next phase of construction, which may be the pouring of the ground floor concrete slab. A few weeks later the next construction phase and so on and so on. Get my point?

By inviting potential buyers to actually view and eyewitness the various construction stages, it will not only educated one of the construction process, but it will further enhance the desire of wanting to buy a unit or two. They can anticipate the spaces of the unit as they are being built. While the units are being constructed, the once potential buyer became a buyer and is now in a better position to think of how they want to do the interiors ect.
At the end of the day, isn’t that what the developer wants? To sell all of their units so that they may make a profit faster? To sell the units in the easier manner possible? To invest less money and time in engaging a sales team, which actually contributes very little to the closing of sales anyways.

When one is to look at larger developments such as high rise condominiums, usually the show unit is not on the actually site of the project. The show unit is a small building in itself, in the vicinity of the project site. Once the show unit has served its purpose and the actual construction of the building has progressed, the show unit would be destroyed to make room for the parking lot, the garden or whatever area that the overall development may require. So here is an example where money has been misused and wasted. Another dead end exhibit.

Like an exhibit at a museum, people tend to return due to the fact that the exhibit is always changing. That is the key word here; changing. A show unit once it is ready for the grand opening or launching of a development, it will never change again. The interiors are complete. The wardrobes are complete. Everthing is complete. So once a visitor has visited the show unit, he has seen everything that has been offered. Therefore, there would be no need to return to visit the show unit ever again. On the contrary, the construction of the project is always changing, which creates a sense of dynamics. It encourages one to want to pay another visit to the project to see the progression of the project.

In conclusion, why not make a change for the better. It will save the developer time and money, increase their sales, encourage more potential buyers to view the property and as an architect, one will be encouraged by the responses from potential buyers to have the end user in mind more when designing. Thank you for your time.

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