In order for the construction of an apartment project in Brisbane, the developer must sell a certain number of two-bedroom units before they are given the go ahead to do so. Not only did they reduce the prices of the unit by 12 per cent but they are asking for an upfront cost that is fifty per cent than the previous amount. The development is located in Cannon Hill and an electrician in Cannon Hill is already waiting for the project to go ahead so they can start their work as well.
The project is under Lime Living and it is said to be the third tower of the project. The construction date is almost here but it is doubtful if they could start since they were not able to sell enough units.
Colliers International, the marketing firm of the project, is trying to rally first time homeowners with an offer of only 5 per cent for the upfront deposit. This offer is available to people who are buying their first property from the market.
Rachel Hutson, the residential associate director, said that it is unusual for a developer to offer properties with reduced prices along with a decrease in the deposit considering that the apartment is off-plan.
She clarified that the tactic is very rare and she has only seen it ever happen that the offer is almost 12 per cent when the original purchaser decided not to go through.
The apartment units that are offered in lower prices under Lime Living is only limited to four. Original price of some is $450,000 which is reduced to $395,000 and the others cost $455,000 before but only $399,000 now.
The program needs the purchaser to pay an added fee of 2.5 per cent once they reached a certain period during the construction period. The same additional rate is imposed if they fail to update their loan deposit with their corresponding bank. As the developer is pressured to meet their quotas, an electrician in Cannon Hill is already waiting for the construction to start as this could mean more work for them.