Auckland Property Developer Offers Cashback Deals to Sell Unsold Apartments

In a bid to sell unsold apartments in a multimillion-dollar development, an Auckland property developer is offering enticing cashback deals of up to $20,000.

Auckland Property Developer Offers Cashback Deals to Sell Unsold Apartments

Current Situation

The Maanaki apartment block in Onehunga, developed by Ockham, still has around 40 unsold units out of its 210-unit total.

Offer Details

  • One-bedroom apartments starting at approximately $670,000 come with a $10,000 cashback offer.
  • Buyers of the cheapest three-bedroom apartment, priced at about $895,000, are eligible for a $20,000 cashback.

Market Challenges

Ockham Residential co-founder Mark Todd described the current property market as an “arm wrestle” since late 2021, with sales dwindling across the sector. He attributed this to the fact that a significant portion of New Zealanders cannot afford housing at current interest rates.

Developer’s Perspective

Todd emphasized that while developers’ costs have stabilized, they remain high, making affordability a challenge for buyers. He mentioned the importance of generating capital by selling the remaining apartments to fuel future developments.

Reasoning Behind Cashback Deals

Todd explained that the decision to offer cashback deals instead of reducing prices outright was to protect the value of the apartments for existing owners. He clarified that retrospective cashback deals for previous buyers wouldn’t be offered.

Final Thoughts

Despite challenges, Todd highlighted that previous sales had been successful and settled without any issues. He noted that while prices had fluctuated, the overall value remained relatively stable.

The cashback offers aim to incentivize potential buyers and facilitate the sale of remaining units, ultimately benefiting both the developer and prospective homeowners.

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