OCA - Oceania Group - retirement villages

[Baa_Baa]

Probably built the $15k into the advertised price mate

No worries here mate

And a rounding error on the development margins when sold.

[trader_jackson]

$15k in $850k are a 1.7% discount. Jeez, times must be really tough if business needs to resort to such huge discounts, wouldn't you say so? Must be time to run for the hills ...

Or maybe just time for some poster to do their marketing 101 homework ;

In the case of the sands, they are 'giving away' half a million dollars (on just half of the apartments on 1 site, assuming half of them have been sold)... if they do this at all their village developments, that's millions of dollars in development margin disappearing... Clever marketing, or overpriced, or not selling as well as predicted? Probably a combination of the 3...
I would have thought the 64 or so apartment units at the Sands would have been able to sell easily, given it has been 4+ months they have been around, considering also the strong interest OCA has continually trumpeted for a couple years (around The Sands), and yet they are now giving away money to try get sales across the line before the end of the half year... funny that.

Sure, $15k here and there (oh and don't forget to account for the potentially huge marketing expenses for those dreaming up and implementing these ideas), but it all adds up, and doesn't paint a good picture for sales momentum or margins.... because, at the end of the day, if all was hunky dory, they wouldn't have to keep increasing incentives to buy as the months go on - they'd be sold already.
ARV's village down the road apartments, released a few years ago when house prices were lower (and they have no sea views/as close to the beach) had no problems achieving a $1m average sale price, yup: no need to give $15k away per unit or spend time and money in the marketing department/consultants, or buying big internet adds or putting up big motorway billboards to get those sales across the line... that marketing department can be expensive stuff you know... Better off to just have a compelling enough proposition for customers to begin with!

[winner69]

In the case of the sands, they are 'giving away' half a million dollars (on just half of the apartments on 1 site, assuming half of them have been sold)... if they do this at all their village developments, that's millions of dollars in development margin disappearing... Clever marketing, or overpriced, or not selling as well as predicted? Probably a combination of the 3...
I would have thought the 64 or so apartment units at the Sands would have been able to sell easily, given it has been 4+ months they have been around, considering also the strong interest OCA has continually trumpeted for a couple years (around The Sands), and yet they are now giving away money to try get sales across the line before the end of the half year... funny that.

Sure, $15k here and there (oh and don't forget to account for the potentially huge marketing expenses for those dreaming up and implementing these ideas), but it all adds up, and doesn't paint a good picture for sales momentum or margins.... because, at the end of the day, if all was hunky dory, they wouldn't have to keep increasing incentives to buy as the months go on - they'd be sold already.
ARV's village down the road apartments, released a few years ago when house prices were lower (and they have no sea views/as close to the beach) had no problems achieving a $1m average sale price, yup: no need to give $15k away per unit or spend time and money in the marketing department/consultants, or buying big internet adds or putting up big motorway billboards to get those sales across the line... that marketing department can be expensive stuff you know... Better off to just have a compelling enough proposition for customers to begin with!

Maybe this us what happens when the Board is dominated by accountants and the CEO seems to spend all time on people stuff.

Maybe Oceania isn’t really a property development company after all

[Leftfield]

Oh dear, I found another village being advertised to me whilst on Newshub with No weekly fees for 2 years... I am to worried to look at any more OCA villages to see if there are any more that have this promo.
What is worse is both of the villages I have seen (The Sands and Meadowbank) are suppose to be really flash, high margin sort of stuff (both with 2 bedrooms starting at $850k) and yet they obviously aren't selling very well, otherwise they wouldn't be giving away $15,000 or so in free weekly fees.

Even cheaper elsewhere..... Only $390k in Upper Hutt! (Of course no comparison to the quality of life in Auck, but an interesting premium none-the-less. Winner's mates at the local bowling club will be happy.)

[Beagle]

Sands units probably falls into two distinct categories. Those units with good sea views and the rest. People with money chasing lifestyle will ante-up and buy the sea view units and I wouldn't mind betting they've sold really well. The issue will be with the units with no, or very limited sea views. Rinse and repeat for Meadowbank.

[couta1]

Even cheaper elsewhere..... Only $390k in Upper Hutt! (Of course no comparison to the quality of life in Auck, but an interesting premium none-the-less. Winner's mates at the local bowling club will be happy.)

There has to be a good discount to convince the punters to live in the Bogan capital of NZ.

[dobby41]

There has to be a good discount to convince the punters to live in the Bogan capital of NZ.

I thought people didn't really move town to live in a village - they purchase in a village near where their roots (recent or past) are.
So those buying in Upper Hutt will know what they are getting.

[couta1]

I thought people didn't really move town to live in a village - they purchase in a village near where their roots (recent or past) are.
So those buying in Upper Hutt will know what they are getting.

As a rule yes although there are quite a few out of towners in that particular village(Probably old Bogans at heart)

[Snow Leopard]

$1.04

Is this a little break-out with some volume behind it?

Has everybody finally stopped worrying about the 'over-hang'?

and where will it go from here?

[couta1]

$1.04

Is this a little break-out with some volume behind it?

Has everybody finally stopped worrying about the 'over-hang'?

and where will it go from here?

To answer your 3 questions, #1-Possibly. #2-No. #3-Up then down