As property prices struggle across Melbourne, developer Lotus Living has promised to pay back the difference if a buyer finds the price they paid for a lot in the Jubilee estate in Wyndham Vale falls after their contract is signed.
Lotus Living project director Daniel Smith said the “industry first” approach could build confidence among buyers and put an end to those trying to pick the bottom of the market.
“Market sentiment is down, and that’s really changed over the last 12 months,” Mr Smith said.
“We are looking to give people the confidence that if they buy today, we will protect their purchase.”
The guarantee applies to equivalent blocks of land being advertised by Lotus Living at Jubilee at the time of settlement. The offer starts on March 9 and will not apply retrospectively.
Jubilee, which will be home to more than 7000 homes once complete, has so far sold more than 1000 lots.
The 480ha estate will feature an indoor water park, schools, a child care centre, parks and wetlands along the Werribee River at the estate’s northern edge.
A sharp market correction over the past 12 months had slowed sales but was now over, Mr Smith said.
“We don’t think the market will keep dropping, we think the market is at or near the bottom,” he said.
“Interest rates and unemployment haven’t really changed a lot. The fundamentals are still there.
“But we need to activate the market, there is some hesitancy out there.
“This is a way to provide confidence.”
Differences between building in new or established estatesPlay Video
Many estates across Melbourne are now offering up to $10,000 in travel vouchers, building or landscaping discounts and other incentives to entice buyers into the market.
While recognising the market had slowed, such offers didn’t foster buyer confidence, Mr Smith said.
The estate currently has about 40 lots for sale, ranging from 188sq m terrace home sites to 650sq m blocks.
Land prices start from $179,000 and rise to $383,000.