The advertisement, by real estate agents Barfoot and Thompson, clarifies that a buyer of the seven bedroom house would be given a Tesla Inc.’s Model Y car, for FREE.
This is a clear indication of the lengths the sellers have to resort to to advertise homes as jumping borrowing costs hurt demand. Home buyers have been discouraged for an investment owing to high mortgage rates int he island country.
According to Guardian, the reserve bank’s financial stability report, released this month, showed that if interest rates hit 7%, almost half of those who bought last year would need to spend 50% of their income on mortgage repayments.
Residential property prices in October released Thursday by the site also show that the asking price for an average house in Auckland fell 3.4% compared to the same month last year, according to Bloomberg.
Real Estate Institute (REINZ) data for New Zealand released this week shows that the median house price was down 10.9% annually, to $825,000. The overall volume of houses sold in October had also dropped dramatically: down 34.7% compared with last year, from 7,486 to 4,892.
According to the Guardian, the Auckland property is on the market for offers around $1.8m – but it sits alongside more than 400 homes for sale in the suburb, many of which are likely be on the market for months.
Experts have stated that tactics like throwing in a Tesla could become increasingly popular for sellers hoping to offload property quickly – and for estate agents trying to sweeten deals without driving area house prices down.
“It’s 100% going crazy since the ad went up, we’re getting a lot of inquiries," Bloomberg quoted Barfoot & Thompson real estate agent Prince Kapoor. “We should sell the property within the week." Kapoor added.
(With agency inputs)
