Stockland, Australia's biggest listed home builder, is giving rebates and gift cards of as much as $30,000 at projects in Victoria, Queensland and New South Wales states. Devine is matching deposits in South Australia and taking over mortgage payments for as long as a year in Melbourne. Peet has been offering discounts of as much as $50,000 in Western Australia, Queensland and Victoria.
Developers, including Stockland and Peet, have said they're facing the worst housing market conditions in 20 years and expect little change in 2013. Stockland, Mirvac Group and Australand Property Group may report “negative earnings surprises” in the fiscal year ending in June, John Kim, Sydney-based head of Australian property research at CLSA Asia-Pacific Markets, said in a report Jan. 29. Kim expects Stockland's shares to underperform peers, while he gives an outperform rating to Australand and Mirvac. Both benefit from non- residential revenue sources.
