Property developers woo buyers with incentives
Property developers woo buyers with incentives
Real estate developers are using promotion programmes in a drive to win buyers as the downturn of the real estate market is continuing to mount.
Property developers are introducing incentives that include supporting buyers in finding lessees for a share of rental payments made to the owner and temporarily subsidising potential lessors if they fail to find somebody to rent the property within a certain number of months.
These incentives, say experts, are supporting developers in finding buyers, but also protecting the buyers from risk in the early stages of ownership.
Refico, the developer of high-end apartment complex Watermark adjacent West Lake in Hanoi, offered customers a highly attractive incentive package that included nearly $10,000 in furniture and guaranteed a 14 per cent return on their investment.
This was the first real estate incentive programme to be offered in Hanoi.
The package includes a roughly $4,000 a month guaranteed rental payment from the developer for the first year of ownership to all investors, regardless of whether they successfully lease their unit or not.
"We consider this one of the most innovative incentives on the market today," said Vu Thanh Tung, general director of Tay Ho Tay Real Estate Joint Stock Company, the project's management company.
"These incentives protect buyers from the instability of the market and they can be sure of a specific return on their investment in the first year," Tung added.
The investor in Fusion Suites Danang Beach, a seaside residential project in Danang, announced it would guarantee lease payments for up to three years if the owner does not find a lessee and will cover potential losses sustained by buyers over the same period.
Another Danang project, the Hyatt Regency Residences developed by Indochina Land, is promising buyers capital gains of 5 per cent for the first two years. This means a $400,000 unit is guaranteed a cash return of $20,000 each year.
Experts say that more and more property developers will be offering incentives in the coming time to entreat buyers but that only those with sufficient capital strength should consider the option.
vir
