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Frasers Property

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Volume 195
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Developers dangle higher commissions to clear less ideal units

13 Aug 2019 09:00

By Nisha Ramchandani

SOME developers are dangling fatter commissions to incentivise property agents to help clear inventory.

A check with property agents suggested that commissions in some cases could rise to 3-4 per cent, or more. Developers may also wheel out incentives or a cash bonus when it comes to units that are harder to sell, such as ground-floor units or units with a less-attractive facing, as agents need to work harder to find suitable buyers once the choice units are snapped up.

"It 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," said Alan Cheong, Savills' executive director (research & consultancy).

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Source: Business Times

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