Shaky confidence in the capital city apartment market is hitting off-the-plan buyers hard, with a significant rise in the number of newly constructed units now worth less at completion than the price they were originally purchased for.
7.30 can reveal that 60 per cent of off-the-plan apartments in Sydney, and 52.9 per cent in Melbourne, were valued lower than their contract price at the time of settlement. In Queensland, 43.1 per cent of units were worth less at settlement than what they were purchased for, and in Western Australia it was 22.5 per cent of apartments.
CoreLogic's head of research, Tim Lawless, said there had been a significant oversupply in the high-rise sector, with supply substantially outpacing demand.
But he said concerns around construction quality, remediation costs and flammable cladding had had a compounding effect.