Developers dangle rental guarantees to attract buyers
Developers keen to offload hard-to-sell property are bringing back rental guarantees as a way to entice reluctant buyers without having to slash prices.
Some shop units at the mixed-development Novena Regency offer a 4 per cent guarantee, a recent newspaper advertisement showed.
The Straits Times understands that some shop units at Icon @ Pasir Panjang, also a mixed development, will soon have a rental guarantee tacked on too.
A rental guarantee means the developer is giving a buyer the certainty of rental income for a predetermined period, usually two years. This saves the buyer from having to look for a tenant, particularly in the coming few years when economic uncertainty and a rising supply of homes and shop space may drive up vacancy rates.