Discounts and 25 year rental guarantees to lure Chinese apartment buyers

The Australian Financial Review (AFR)

Property developers are discretely offering discounts on apartments in Brisbane, Melbourne and Perth to Chinese buyers for the first time, in a sign lending restrictions and over-supply are beginning to affect prices. One Melbourne developer is also offering a generous 25-year rental guarantee in a bid to lure Chinese buyers back to the market. The price discounts of up to 7 per cent were offered to clients of China’s biggest online real estate agency, Fang.com, late on Friday night in an effort to clear stock before year’s end. “This is the first time we have offered cash discounts,” said Fang.com agent Edward Shang. A director at ACProperty.com.au, Esther Yong, said one developer was offering Chinese buyers a 25-year rental guarantee in Melbourne in an effort to move unsold apartments. “The market has slowed down a lot over the past six months and recently the only deals that are moving are those with big incentives,” said Ms Yong. “It’s not uncommon to see deals with one or two-year rental guarantees but this is the first time I have seen 25-year guarantees being offered.” “It’s working,” she added, noting Chinese buyers have been attracted by the new deals.