How Australian Media Decreased Buying Confidence For Apartments In Sydney
While beginning with the tedious process of buying your first home, you tend to be mindful of the investment you plan on making. Therefore, researching all the major aspects would save you from offering a house that may not prove to be a great fit.
The latest figures from researches show that Sydney’s apartment market is facing quivering waves of confidence. However, the buyers with their practical mind set on buying a first home as an investment are on an all-time low compared to the rise in the number of newly constructed units.
What Does Actual Research Indicate?
- According to Corelogic, nearly half of the off-the-plan constructed apartments in Sydney were less than the price they were sold for.
- Other research found approximately one-third off-the-plan houses to be 10% less worthy by people buying their first home as an investment.
- Sydney has noticed a downfall of 15%, while properties in Melbourne saw an 11% downfall in prices.
What Are The Reasons Behind The Sudden Downfall?
If you are buying your first home, you tend to go by the market image of the apartment or places you plan on living in. A thread of negative headlines is seen to work as bad publicity for the apartment market in the past few years.
In Australia, there was the destabilization of market confidence due to two scenarios, namely.
Evacuations Of Sydney’s Opal Tower
After some time of the construction of the Opal Tower, 392 apartments were evacuated on Christmas Eve after spotting cracks in the buildings, and residents were given temporary accommodations. If you are planning on buying your first home in Sydney, this instance and the images portrayed on the media channels would send shivers down your spine.
Mascot Towers Swept Off The Feet
Another big hit for the Sydney real estate market was when the residents of Sydney’s Mascot Towers were advised to vacate the building considering the poor situation of the building. Engineers observed significantly large cracks around beams and destabilization of land supporting the Mascot Tower.
If you are an aware buyer planning on buying your first home in Sydney, then the media coverage of the whole scenario would have been a moment of having the rug swept off from under the feet, quite literally.
As a repercussion of such instances, buyers in Sydney started doubting the builder’s ethics and rectifying other possible issues they could face if they planned to buy a property.
What Is The Way Out Of This Downfall?
If you are buying your first investment property in Sydney, the plight house owners face in Opal Tower, and Mascot Towers are just the tip of the iceberg. Hence proper research is the key before making the bug purchase. Some important key points are:
- Experts advise not to go for new apartments, especially if it is more than three stories high. If you are buying your first investment property in Sydney, then go for older, manageable, and utmost three stories walk-up options.
- Inspecting the whole building rather than just the apartment and talking to the residents can give you an unbiased image of the property in every aspect.
- Researching the strata records, which consist of defect inspection reports, all the financial data, and details of all the strata committee meetings.
Looking out for bond schemes and statutory warnings that cover any shortcomings in the first two years of a building and major defects observed within the first six years.
Conclusion
As important as it may sound, undergoing such rigorous research may overwhelm you while searching for your dream house. However, Quarter Acre believes in delivering value for money and understands customers’ individual requirements.
Moreover, It applies its intelligent methodologies and data-driven techniques to find you the best residential price, benchmarking good quality and wide options availability just to fulfil your wish of owning your dream home.
