Sydney developers have resorted to special offers due to an oversupply of apartments, price cuts and restrictions imposed on foreign developers.
Transactions included the payment of 12 months of mortgage credit to the buyer, $ 50,000 "bonuses" and furniture vouchers, all aimed at solving the glut of overabundance. apartments in the capital. In addition, some developers have launched targeted social media campaigns to attract customers, according to a report by ABC News.
St. Trinity Property Group, for example, announced for one year free mortgages on its selected "luxury apartments". The Arden group, meanwhile, claimed to pay stamp duty for buyers of its development in the northwest of the city.
Real estate analysts said transactions are usually born in an oversupplied market. A total of 54,000 new apartments built in 2018 and 2019 would likely be on sale by the end of the year.
Developers would do anything to avoid lowering the asking price, according to SQM's chief research officer, Louis Christopher,
.
"If they do [reduce the price] it will reduce the valuations of all the other properties of this development, and therefore the risk of settlement increases accordingly," he told ABC News. "But buyers should be aware that they always pay for it, in one form or another, usually in the form of an overvaluation."
Sydney posted a median unit price of $ 678,199 in May, down 6% over the last 12 months. Some real estate professionals, however, have predicted that the city's housing slowdown will bottom out in 2019 and begin to recover in early 2020.
The real estate industry needed a "hard dose of reality," said Martin North, a real estate analyst at Digital Finance Analytics.
"But according to the data I see, investors are not interested in an offer and demand is failing to pass," he told ABC News.
While average unit prices fell by only 6%, some areas of Sydney, such as Hurstville and Ryde, experienced sharp declines.
"In Ryde, unit prices have dropped by more than 30%, which developers can not cover," he told ABC News.
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