Using developer incentives to drive momentum

Agent Insight Series

They’ve long been a feature of project sales: bonus inclusions, price reductions, rent guarantees, rebate programs. But when used well, developer incentives aren’t just sweeteners for buyers — they’re powerful levers for building sales momentum.

In a market where timing, velocity and positioning can make or break a project phase, well-structured incentives help agents generate urgency, shift buyer behaviour, and re-engage the pipeline when it matters most.

In this article, we unpack the why behind incentives, how to spot when they’re a genuine driver of momentum (and when they’re just noise), and what to do with them once you’ve got them in hand.

Incentives are surging — and not just because of the market

It’s no secret that incentives have become more prominent in the last handful of years, with various reports of increases in structured incentives across new apartment projects in key markets. This trend is particularly evident in segments affected by tighter credit, cost of living pressures, or slow delivery pipelines.

In markets such as Sydney, Melbourne and Brisbane, many current projects are using incentives like stamp duty rebates, rent guarantees, turnkey packages or extended settlement terms — often designed to smooth purchase pathways for first-home buyers or mitigate timing pressures around project delivery.

It’s too easy (and incorrect), however, to read incentives as a story about soft markets. The more strategic view is that developers — and agents — are becoming more sophisticated about how incentives are used. We’re seeing more 'quiet' incentives designed to move particular buyer profiles, reward agent relationships, or drive volume at key phases of a project life cycle.

In the right hands, incentives are not about rescuing stock — they’re about supporting sales rhythm and driving buyer behaviour for the betterment of everyone involved.

How incentives can help agents maintain or increase momentum

When used well, incentives give agents more than just a headline offer. They create:

- Urgency — a time-bound incentive or staged offer can bring buyers forward, converting 'watchers' into decision-makers.

- Differentiation — especially in crowded segments where buyers are comparing like-for-like product, a sharp, targeted incentive can make a particular dwelling type stand out from its peers.

- Conversation starters — giving agents a fresh reason to re-engage warm leads or re-open discussions with previously cold contacts, a well-timed incentive can help shift buyers who’ve been sitting on the fence.

- Support for price integrity — structured incentives can be used to preserve headline pricing while giving value in other forms, protecting project positioning and valuation outcomes, again, good for everyone.

How to spot a ‘good’ incentive

Not all incentives are created equal — and agents who can read them well are better equipped to use them effectively. A good incentive typically:

- Targets a genuine barrier to purchase — for example, deposit hurdles, cash flow timing, upgrade costs.

- Aligns with buyer motivations — not just 'cheapening' the offer, but adding real perceived value, such as full appliance packs, move-in guarantees, or strata fee holidays.

- Is structured to protect the integrity of the project — not eroding comparables or affecting bank valuations.

- Is clear, easy to communicate, and quick to execute — if you can’t explain it in 30 seconds, it won’t help you sell.

When they’re just dressing

Incentives that don’t move the needle often have a few tell-tale signs:

- A vague or overly complicated structure.

- 'Inclusions' that have little value to the target buyer profile — particularly when developers overestimate lifestyle appeal and under-estimate what matters to the buyer.

- Incentives that erode perceived quality, particularly if the offer feels too generous or is poorly matched to the price point and market segment.

What to do once you’ve got them in hand

Smart agents will:

- Use incentives to re-activate their database — it’s often a lever for re-engagement as much as for first contact. The message matters here: framed well, an incentive is an opportunity, not a discount.

- Be selective about when to lead with incentives — sometimes they should be in the headline, sometimes they’re best reserved for deeper conversation. Blanket promotion of incentives can cheapen them, while selective release can maintain value.

- Pair incentives with market insight — for example, if you know stock is tightening or finance approvals are improving, an incentive can ride that wave of positive momentum and help accelerate buyer action.

- Track which incentives actually convert — knowing what works (and what doesn’t) helps build better strategy for future campaigns. Over time, this learning helps refine which incentives are worth negotiating with the developer in the first place.

Incentives can absolutely drive results but they should never replace fundamentals: good stock, good positioning, good engagement, good follow-through.

Used strategically, though, they become a genuine tool, not just a sweetener. And the best agents are those who know exactly how and when to deploy them to maximum effect.

Not sure how to use incentives effectively? Reach out to our team.

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