Off-the-plan apartment values slump in Melbourne, Sydney

The AFR published another report over the weekend warning of an impending oversupply of apartments in the major capitals, with the value of some apartments in Sydney and Melbourne reportedly declining by 20% between purchasing off-the-plan and receiving the keys:

Nearly 44 per cent of apartment purchases in the most populous cities are below the sale price at the time of completion, and units in mushrooming high-rises in major capital cities are the hardest hit, according to WBP Property Group.

…the negative equity appeared to be worst for two-bedroom apartments priced between $500,000 and $700,000…

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.