WHAT do you make of this?
DESPITE aspiring First Home Buyers now tending to steer clear of newly built high-rise apartments … with apartment suburbs in freefall after tower disasters …
OWNERS are being forced to drop their price by as much as $60,000 or $ 70,000 yet developers are still forging ahead with high-rise …
THE home seller may lose this much but the developer is still set to gain as each unit is built for say $200,000 … give or take …
-high density of high-rise towers very lucrative for developers
THE Property Council is running Australia with their former policy writer at the helm … so for the next 50 years Sydney is set to grow by 107,000 people annually
–47,000 Chinese fly into Australia every week; with more at Chinese New Year and Golden Week
-a huge number of homes built very quickly; the 85% defective on completion rate is likely to be maintained
-Berejiklian Govt instead of enforcing the recommendations of Lambert, Shergold and Weir proposes a ratings scorecard for builders
MORE OF THE SAME! OR ARE YOU GOING TO JACK UP SYDNEY? .. IT’S YOUR CALL
IF you are fed up with the Housing PONZI Scheme and want to change this …. message us through our Facebook link below for a Campaign Plan! *
Related Article ….
NSW Government proposes ratings scorecard for builders to prevent construction disasters
EXTRACT: Nearly one in five sellers in high-rise suburbs lost money
Aidan Devine 25 JAN 2020
There is an oversupply of high-rise apartments in parts of Sydney, with plenty more units still under construction. Picture: Angelo Velardo
Losses are mounting for unit sellers in Sydney’s high-rise suburbs as a recent spate of building disasters sours buyer demand for homes in large apartment towers.
Close to one in five sellers in the high density Parramatta and Canterbury-Bankstown council areas exchanged their properties for less than they paid for them, while about 15 per cent made a loss in Ryde.
Sellers also made frequent losses in the Strathfield council area – which neighbours Sydney Olympic Park’s Opal Tower, a building residents were forced to evacuate in late 2018 due to dangerous cracking.
-about 16% of sales incurred a loss for vendors: CoreLogic records for September quarter
MORE: Sydney’s auction hotspot revealed
Demand for housing at record high
-average seller in these city regions lost between $60,000 – $70,000 after 4 years
YET with the remainder of Sydney, sellers rarely lost money due to record-low interest rates fuelling housing demand.
Residents of Olympic Park’s Opal Tower were forced to evacuate over dangerous cracking.
-more than 90% of city sellers sold with a profit with average profits from $70,000 in Burwood to $1.1 M in the northern beaches.
-almost 99% of Mosman sellers made a profit; just over 95% of sales vendor profit in council areas of Waverley, North Sydney and Hunters Hill
CoreLogic head of research Eliza Owen said sellers in high-density suburbs were struggling because there were too many other vendors to compete with at a time when buyers were turning away from high-rise units.
“Cracking would have made buyers weary … property is probably the biggest purchase they’ll make,” Ms Owen said.
“There’s also a huge supply of (high-rise) properties up for sale, most of which were meant to appeal to investors.”
Ms Owen added there was a rush from some investors in high density areas to sell because rents were falling and vacancies were rising, increasing their holding costs.
-investors selling properties were head to head with developers who continue to release new housing
–nearly 45,000 new units recently approved across Parramatta and Ryde LGAs
Realestate.com.au head of economic research Cameron Kusher said the longer-term outlook for unit sellers was more positive.
Parramatta has one of the biggest pipelines of new unit projects.
It would likely take 18-24 months for excess housing stock in areas like Parramatta to get absorbed if population growth trends continued, he said.
-sellers in the northern beaches and eastern suburbs selling for large profits with 3 and 4 bedroom homes appealing to families; dominant in the market
SELLERS WHO LOST MONEY (by LGA)
Parramatta 19%
Canterbury 18%
Ryde 16%
Strathfield 16%
Cumberland 15%
Source: CoreLogic
SOURCE:
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