Online section auction
Sections in a major new Canterbury subdivision will be auctioned online, with reserve prices starting at $99,000.
The 1500-section Ravenswood development will be built opposite Pegasus, near Woodend in North Canterbury.
It will have both standard sections and terraced housing, with a commercial centre.
Developer Infinity Group has set up a online auction programme and will offer 200 sections for sale on June 29.
Spokesman Paul Croft said the process would "revolutionise the way local people buy property - making property costs more transparent and prices more affordable".
Opening bid reserves had been calculated at cost price, plus 10 per cent, Croft said. New homes in the subdivision would be priced in the same way.
"We agree that costs have climbed too high ... we thought there must be a better way for people to understand the true cost of the property, and also decide what they want to pay for a new section."
It is not the first novel sales marketing plan from Infinity, which also created Pegasus before losing control of it in 2012 over a financing crisis.
In 2006, the company sold $122 million worth of Pegasus sections in a silent auction day, after spending $1m on a giant scale model of the town.
Earthworks at Ravenswood will start when enough sections are pre-sold. They will range from 310 square metres to 700sqm.
- The Press
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