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/ All categories of countries are / Australian property developers treble commissions to selling agents due to a slow market

Australian property developers treble commissions to selling agents due to a slow market

Post available in: English

As property sales slow in the Australia, pragmatic property developers are more than trebling sales commissions to agents and lenders slash rates by up to 0.4 of a percentage point, increase discounts and refund mortgage insurance payments are the latest moves to attract new business.

The increased commissions – up to AUD 90,000 plus GST for successfully recommending a $1 million property according to industry sources is now the norm.

Developers are also offering a new round of commission payments to mortgage brokers and financial advisers that recommend completed residential dwellings, which are usually one and two bedrooms recently completed apartments.

Commissions of more than 8 per cent, plus GST, are on offer for apartments in West Melbourne plus lucrative rental deals for buyers, such as 5 per cent rental guarantee for five years.

Real estate agents claim the typical rate was in the past between 2.5 and 3 percent to sell developers’ stock. This does not include marketing expenses.

The latest commission rates are a 30 per cent increase on the highest rates paid last year and are a lucrative top-up on the additional commission or cash payments paid by clients for arranging a deal or finance.

Potential buyers are also being offered flexible finance and upgraded fixtures, such as marble kitchens, Miele appliances, timber flooring and high ceilings.

Lenders’ black ban on apartments of less than 50 square metres is creating problems for developers, who are holding onto them rather than reselling them at discounts that might lower prices for apartments in the same complex, and forcing resellers to reduce prices, brokers claim.

Australian and New Zealand real estate brokers are recognised as progressive and efficient sellers of real estate with sales volumes that are the envy of the rest of the world so are well placed to keep liquidy up even in the poor market conditions.

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Gateway to South America

About Gateway to South America

Gateway to South America was established in 2006 as a single office in Buenos Aires. The company has since expanded into a vibrant regional network, servicing the Southern Cone clients in Argentina, Brazil, Chile, Paraguay, Peru and Uruguay with professional real estate marketing services. If you enjoy reading our news site please share it on your social media below.

Post available in: English

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