PHOTO: Ockham Residential co-founder Mark Todd. Photo: www.ockham.co.nz
A property developer in Auckland is enticing buyers with cashback incentives of up to $20,000 in an effort to sell remaining units in a large-scale development.
Approximately 40 units remain unsold in Ockham’s Maanaki apartment complex, which comprises 210 units in Onehunga.
Starting at around $670,000, one-bedroom units qualify for a $10,000 cashback offer, while the least expensive three-bedroom unit, priced at about $895,000, offers a $20,000 cashback.
Mark Todd, co-founder of Ockham Residential, described the current property market as challenging since late 2021, with a downturn in sales industry-wide.
Todd noted the financial strain on potential buyers due to high interest rates, asserting that developers face challenges maintaining profit margins amid stagnant market conditions.
About 40 of the 210 Manaaki apartments are still to sell. Photo: Supplied/Ockham
He emphasized Ockham’s decision to provide cashback incentives as a gesture of goodwill, aiming to stimulate sales and prepare for future projects by freeing up capital tied to unsold units.
While Todd acknowledged the possibility of holding onto unsold units for leasing purposes, he emphasized the importance of generating revenue through new developments.
Regarding the decision to offer cashback rather than reducing prices, Todd explained that it’s intended to maintain the value of units for existing owners. He clarified that retrospective cashback offers for previous buyers were not feasible, emphasizing the shared risks involved in property investments.
Todd highlighted the successful settlement of 170 previous unit sales and suggested that current market fluctuations mean that early buyers have seen their investments stabilize in value after a period of appreciation and subsequent decline.
SOURCE: RNZ