EIG Developments affirms Elpis, Truganina buyer deposits secure in Australia
EIG Developments has moved to affirm the security of deposits paid by buyers in the Elpis project at Truganina, in Melbourne’s west.
The company advised it had secured five buyers through informal referrals by Ausin Australia.
"The funds obtained from these buyers are well-protected and safely held in Australia, in EIG’s solicitor’s trust fund," a spokesperson advised.
EIG Developments Australia categorically stated that the land packages purchased by these five buyers will proceed to settlement, without any disruption.
The suggestion of deposit tumult in projects across the east coast arose in a newspaper report by the Australian Financial Review.
As an Australian developer, EIG Developments Australia’s focus is on sales for the domestic market, EIG told Property Observer.
EIG was responding to news that the residential project marketer Ausin China has collapsed leaving a trail of 100s of failed property settlements in Australia.
"Any informal connection with Ausin Australia has been discontinued," EIG added.
Ausin China sold off-the-plan apartments and houses to buyers in China, with an investigation now underway into the whereabouts of the deposits along with settlement monies.
Ausin Australia, led by founder and chief executive Joseph Zaja, indicated on Friday there was evidence of fraud and the matter has been reported to the Australian police.
Last year new land estates within the Melbourne suburb of Truganina were identified as providing an affordable option for first home buyers, according to HTW’s Month in Review: March 2017.
The median house sale price in January 2017 was $492,000 in Truganina. It is now $541,000.