Sections up for online auction

The developers of Ravenswood Village said it will make property costs more transparent and prices more affordable.

Starting bids for new sections will be set at $99,000.

Purchasers can reserve a section by placing an option, before a one-day online auction of more than 200 on June 29.

Ravenswood Developments Ltd general manager Paul Croft said the move was driven by the rising cost of new property.

“We agree that costs have climbed too high. We have decided to do our best as a developer and only charge 10 percent over our cost to develop with no further reserves. We then have a massive auction of over 200 lots where the final prices are determined by the buyer. If there are no further bids then the section is sold at cost plus 10%,” he said.

“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. We’ve also settled on a model of cost plus 10% to build a new home for buyers.”

He said the development was designed to be a community for young families and first-home buyers. “To do this successfully, we needed a process that will let more people have access to new sections and house and land packages, without paying beyond their means.”