Free car to lure home buyer

by Hilary Smale

May 6, 2008

IN a bid to counteract Perth’s slowing housing market, the vendors of two new Rockingham homes have gone to the extraordinary length of offering a free new car to the buyers.

The two townhouses, at 2 and 3/8 Hymus Street in Palm Beach, had been on the market for nine months. Prices had been reduced before the vendor decided put the houses up for auction and throw a free car into the deal.

A property ad in the West Australian on May 3 featured one of the homes, with the words “Free car! To the successful buyer at auction only!”

ABS figures released this week show Perth had the slowest home price growth of any Australian capital city in the year to March 2008. Perth prices rose just 0.6 per cent, while Brisbane and Adelaide prices leapt by more than 20 per cent.

The agent listing the two properties, Caroline May, of Raine & Horne Rockingham, said she’d received several queries about the free car, from both prospective buyers and other agents.

“We’re all quite excited about the auction,” May said. “We’ll have to see if we set a trend or not with the free car... because it’s a bit quirky.”

On settlement, the purchaser will receive cash to buy a car of their choice up to the value of $20,000.

“If we buy one now it probably won’t be the type of car they like,” May said.

The two new houses are located just 100 metres from the ocean. They’re open every Saturday and Sunday from 12 to 12.30pm until the auction on Saturday, May 24.