Super Black Friday Deal: Melbourne Property Developer Offers $100,000 Off

A Melbourne developer is offering the best Black Friday deal around or a dire sign for Australia. Bet on the latter.

The Next Level in Black Friday Deals

In what's billed as the biggest Black Friday deal ever, a Melbourne Property Developer Offers $100,000.

As the housing market cools, developers and agents have been forced to offer sweeteners sometimes worth tens of thousands of dollars, ranging appliance packages and rental guarantees to stamp duty payments.

Caydon Property Group is taking that to the next level by taking part in the global Black Friday shopping event, in what it’s describing as an “industry first”.

From 6am AEDT on Friday, buyers will be able to book one of 100 “VIP appointments” on the developer’s website to “lock in the savings” on one of eight projects in Cremorne, Moonee Ponds, Ivanhoe, Northcote, Preston and Flemington.

Caydon international marketing director Steve Williams said there had already been strong interest in the deal with more than 5000 visits to the website, which he said was “fairly robust” and should hold up under the traffic.

Mr. Williams said across the portfolio there were five apartments or townhouses that had a $100,000 price reduction. “Every apartment has a discount of at least 5 per cent, then some are up to 10-11 per cent,” he said.

Mr. Williams denied the move was desperate. “This is in no way anything other than being innovative and trying out the seasonal approach,” he said.

Sucker Trap

I sense desperation. Regardless, 5-11% off is no super deal. It's a sucker trap.

Mike "Mish" Shedlock

Comments (10)
No. 1-5
Jslique
Jslique

The government will not let housing go down without a fight.. Many politicians have got rental properties that they have negatively geared the mortgage repayments. Taxes are so high in Australia and the popular way of reducing the tax bill is getting a rental property and negative gear the mortgage. They brought in a first home owners grant. I don't know if they still have that. But they can always fiddle with that.. Increase the amount of the grant. That brings in the first homeowners and that can be used as their deposit.. Who knows what else the government will do to save the housing market. I've been waiting for a bust for years.. We have a population of 23 million and we are running out of livable land.. Wtf. That's one of the excuses I have heard why house prices are so high..

JL1
JL1

Australia had an open doors immigration policy for Chinese and brought in a lot of middle class Chinese to buy overpriced apartments.

Also despite Australia having a policy of turning asylum seeker boats away and putting these migrants to Nauru island for years to stop the human smuggling and stop the drownings Australia had previously allowed so many humanitarian migrants into Australia that they and their children have been bringing wives and husbands from their native country to Australia through family re-unification so this population has also been increasing and making sure there is demand for rental apartments that fit large families.

Just to keep an obvious bubble going on for a short while many Australians are ready to sell their country.

killben
killben

“Every apartment has a discount of at least 5 per cent, then some are up to 10-11 per cent,” he said.

Even if price had only doubled in the last 5 years (when ZIRP was in vogue across the world), then also 10% drop means it is 80% higher than 5 years ago. If that is cheap, I have a bridge to sell.

The movie has probably just got started. The only question that remains is what will RBA do? Because if RBA does not intervene (IMHO, unlikely) I fully expect home prices to follow the Hemingway's way to bankruptcy-slowly at first and then all of a sudden.

We do live in interesting times where you get a housing bubble every decade across the world.

pvguy
pvguy

I had to look up negative geared, "where rental income is less than mortgage interest costs," but now it's clear. Another version of lose money on every unit and make it up on volume, or in this case a greater fool and/or tax write offs.

I learned a new phrase today, so the day is off to a good start. And the laundry just finished, so productivity everywhere :-).

Angry of Hawthorn
Angry of Hawthorn

Australia has a Federal election due before mid May next year. Barring a minor miracle for the incumbent Liberal Party the Labor (opposition) party will take over government. Two key campaign policies of Labor are the removal of franking credits on dividends and negative gearing tax advantages for investment property. Bad news for the Australian stock market and worse news for the property market should they proceed. The 40% declines in Australian property that some commentators are predicting might yet be conservative as the nation moves towards recession.