Pricing list: Striking a balance between transparency and flexibility

WHEN the developers of GEM Residences released last week a full price list for all 578 units ahead of its launch on Friday in the name of greater transparency, the move was largely seen by many in the industry as a publicity gimmick to boost sales.

One view is that it would not hurt to release a price list and stick to it on the first day of sales, since the likelihood of being able to mark up prices on strong demand is low under current market conditions.

Others feel that there is no need to overplay the usefulness of a price list that is only valid for as long as developers stick to it. After all, no developer will wittingly deny themselves the flexibility of adjusting prices subsequently to maximise profits.