{"id":109844,"date":"2019-08-13T10:53:21","date_gmt":"2019-08-13T03:53:21","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-offer-fatter-commissions-for-less-ideal-units\/"},"modified":"2019-08-13T11:06:52","modified_gmt":"2019-08-13T04:06:52","slug":"developers-offer-fatter-commissions-for-less-ideal-units","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-offer-fatter-commissions-for-less-ideal-units\/","title":{"rendered":"Developers offer fatter commissions for less ideal units"},"content":{"rendered":"


\nIn a bid to move harder to sell units, such as those with less attractive facing or ground-floor units, some developers incentivise property agents by offering higher commissions.\u00a0
\nDevelopers may also give out incentives or a cash bonus once the choice units are sold, reported The Business Times.
\n\u201cIt has been mostly the boutique to mid-sized developers who pay out higher-than-normal commissions for the unsold inventory in their high-end basket of projects,\u201d said Alan Cheong, executive director for research & consultancy at Savills.
\n\u201cIn today\u2019s market, agents expect developers to pay a minimum of 2.3 per cent commission for them to be motivated to clear any project\u2026And for a boutique project, to get the visibility up, the commissions must be higher than 2.3 per cent.\u201d
\nIn some cases, commissions could even go up to three to four percent.
\nCheong noted that commissions rose to about 1.5 percent last year following July\u2019s cooling measures and have continued to increase this year. This comes as initial month launch sales rate dropped from 22 percent in the second half of 2018 to 12 percent in the first half of 2019.
\n\u201cIt makes more sense to offer agents higher commissions as opposed to cutting prices across the board. This could also lead to a price war with other developers, which is a lose-lose situation,\u201d said Nicholas Mak, head of research and consultancy at ERA Realty.
\nSL Capital\u2019s Sky Everton is said to be offering commissions of up to three percent, while commissions for the Affinity at Serangoon, which is developed by an Oxley-led consortium, is up to 3.7 percent.
\nLogan Property is offering commissions of 1.8 percent for The Florence Residences, and additional cash incentives that could range from $5,000 to $20,000 for certain units.
\nOne consultant, however, noted that projects which are expected to receive strong demand may offer commissions of less than two percent.
\nCommissions for Frasers Property\u2019s luxury development Rivi\u00e8re is said to be 1.8 percent, while City Development Limited and TID is offering commissions of around 0.9 percent for EC Piermont Grand.
\nLooking to buy a Singapore home but not sure where to start? Get insight on the best locations for your new home with our\u00a0AreaInsider\u00a0Guides.
\nFiona Ho, Digital Content Manager at PropertyGuru, edited this story. To contact her about this or other stories, email\u00a0fiona@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Developers offer fatter commissions for less ideal units<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

In a bid to move harder to sell units, such as those with less attractive...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-109844","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-szG","jetpack-related-posts":[{"id":105119,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/private-home-sales-up-4-4-as-developers-offer-higher-agent-commissions\/","url_meta":{"origin":109844,"position":0},"title":"Private home sales up 4.4% as developers offer higher agent commissions","date":"March 18, 2019","format":false,"excerpt":"\r The prospect of the Cross Island Line may have also boosted sales at projects situated near upcoming stations. Despite the absence of new launches and the Lunar New Year festive lull, developers sold 455 homes in February, up 4.4 percent from January and 18.5 percent higher over the same\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":120189,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/ura-probes-into-agents-commission-rates\/","url_meta":{"origin":109844,"position":1},"title":"URA probes into agents\u2019 commission rates","date":"February 5, 2021","format":false,"excerpt":"\r URA probes into agents\u2019 commission ratesThe move comes amid a hike in commissions as well as market speculation of new\u00a0cooling measures\u00a0as residential property prices continue to increase despite economic woes. The Urban Redevelopment Authority (URA) has queried housing developers on the latest commission rates they pay property agents to\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/02\/property-agent-house-and-keys.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":87859,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hong-kong-developers-speed-up-sale-of-empty-flats-as-plans-for-vacancy-tax-gathers-steam\/","url_meta":{"origin":109844,"position":2},"title":"Hong Kong developers speed up sale of empty flats as plans for vacancy tax gathers steam","date":"May 12, 2018","format":false,"excerpt":"\r Last week, property agent Alvin Tai brought three clients to view four units on the 85th floor of the Cullinan luxury development near Kowloon MTR station that has been left unsold by the developer Sun Hung Kai Properties for more than 10 years, in the hope of closing deals\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8190,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/propnex-bucks-trend-with-200m-in-commissions\/","url_meta":{"origin":109844,"position":3},"title":"PropNex bucks trend with $200m in commissions","date":"March 9, 2016","format":false,"excerpt":"\r Mohamed Ismail, CEO of PropNex Realty. (Photo: PropNex) Despite Singapore\u2019s sluggish property market, PropNex Realty saw gross commissions soar to a record high of $200 million in 2015, while transaction volume surpassed 40,000 for the first time. In a statement, the real estate agency said its strong financial results\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":106676,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/home-prices-to-hold-steady-despite-property-cooling-measures\/","url_meta":{"origin":109844,"position":4},"title":"Home Prices To Hold Steady Despite Property Cooling Measures","date":"April 29, 2019","format":false,"excerpt":"\r Darren Teo, head of research at Edmund Tie and Company, believes that residential property prices will remain firm even with the latest cooling measures in place. Despite last year\u2019s property cooling measures, Edmund Tie and Company expects residential property prices to remain relatively stable.\u00a0 Prior to the latest cooling\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":97688,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/what-is-the-most-lucrative-job-in-the-worlds-costliest-property-market-a-sales-agent-of-course\/","url_meta":{"origin":109844,"position":5},"title":"What is the most lucrative job in the world\u2019s costliest property market? A sales agent, of course","date":"September 12, 2018","format":false,"excerpt":"\r It\u2019s a great time to be a Hong Kong property agent. In some cases, developers are paying more than double their usual 3 per cent agent commission for selling a flat, as they get aggressive in paying agents to drum up sales. 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