Liberty One development to give one of next 25 buyers $500,000
A Melbourne developer is offering a $500,000 cash incentive at a western suburbs apartment project as the industry looks to stimulate off-the-plan sales.
It comes as a senior Victorian property industry figure has urged state and federal governments to acknowledge their part in the currently “challenging” market.
Earlier this year an eastern suburbs developer offered to pay three years of private school fees for buyers, worth close to $100,000.
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New apartment sales have suffered as a result of a wider market correction, lenders increasing their loan scrutiny and cutting back on the amount they loan, as well as government changes to off-the-plan concessions and increased taxes for global investors.
Property Council of Australia Victorian executive director Cressida Wall said industry efforts to stimulate buyers “show how challenging the market is for developers and agents at the moment — particularly those selling off the plan”.
“This is what happens when lending conditions are tightened and governments change policy settings to disincentivise off-the-plan sales and dissuade global investors,” Ms Wall said.
“With Melbourne’s population figures set to match Sydney in a little over a decade, government needs to do more to ensure that apartment markets are sustained through economic headwinds.”
Developer Bensons is behind the latest creative push, offering the $500,000 incentive to a randomly selected buyer out of the next 25 people to purchase an apartment at their 24-storey Liberty One development at 1 Warde St, Footscray.
Sales executive Jayce McMeeken said with prices for the project topping out at $790,000 they hoped the windfall would be collected by a first-home buyer.
“The campaign is intended to make a huge difference to the life of a purchaser by returning the money that collectively we might have paid to external real estate agents as commissions for sales and instead giving it to one lucky person,” Mr McMeeken said.
Only Victorian buyers who buy a home for more than $500,000 via the project’s sales team will be eligible.
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The project has sold about 100 apartments to date. It features lavish extras including a rooftop cinema, yoga space and indoor and outdoor lounges that look across Flemington Racecourse.