Developers Offer Big Incentives
Property developers in Sydney are offering their own inducements to off-the-plan buyers in the absence of government incentives. Potential mortgage holders are being lured with incentives including $15,000 discounts, developers taking on stamp duty costs or reducing the size of deposits for their properties. Managing Director of CBRE, David Milton, pointed to the Rosebery Park development where the developer is offering to pay the stamp duty for all buyers on anything bought off the plan.
“It’s a real benefit for buyers because the saving on, say, a two bedroom unit could be $25,000 to $30,000,” he said. However, it may not last for long. “Whether the developers can sustain that sort of offer, I doubt it very much,” said Ian Bennett from Colliers International. “It would just be to underpin the development, and then they’ll offer a lesser amount once they do that.”