The risk is that by pushing incentives higher now, developers are setting themselves up for pain in 18 to 14 months' time, when these projects come to settle.

"In the end, an overpriced project has a settlement risk," said Matthew George, a director of apartment marketing firm Urban Activation in Melbourne.

"The commission won't save you when settlement comes around, if the reason the commission's been offered is because there are other fundamental issues."

While approvals of new apartments show signs of slowing, an estimated 44,784 apartments are due for completion and settlement this calendar year across Sydney, Melbourne and Brisbane, up almost a quarter on last year's 36,486, consultancy MacroPlan Dimasi says.

Next year they will jump again to 52,920, the figures – based on previous apartment approvals – suggest.



Alpha 14 is offering an 8 per cent commission, $10,000 "channel bonus" and to cover the cost of the $5,000 FIRB application fee on sales of apartments at its 33 North project, a development of 82 one- and two-bedroom apartments in North Melbourne, according to an email Investorist sent to overseas agents last week.

Apartments in Kilcor's 111 Quay St development in Brisbane are also being offered at an 8 per cent commission, according to the email seen by The Australian Financial Review.

MAB made its offer over the six remaining apartments in an email it sent directly to its overseas channel agents. MAB chief operating officer David Hall said Banksia had sold "extremely well" due to its waterside location and larger apartments.

"There have been a range of incentives offered through the cycle of selling the apartment building," Mr Hall said. "The commission arrangements have not changed."


Investoris founder Jon Ellis, who declined to speak about any of the individual projects in his email, said higher commissions were an indication of a softer market.

"What we are seeing is with projects a little bit older in the market, on for longer than developer might like – they may have tried the local market - they're coming back and offering larger commissions. This is not uncommon. But we are seeing a higher proportion of developers following this strategy, which suggests the market there is softer."

Apartments were like any other stock and sometimes needed a push to clear, he said.

"Whether it's Prada sunglasses, a Holden motor vehicle, you're going to get to the end of a model, a new season's coming up and you'll have a clearance sale," he said.

"With properties you cannot have a clearance sale on off-the-plan apartments – it would affect the valuations of the others – so you may offer incentives to the agents to sell them."