Apartment investors down one third

Thursday, 9 March 2017

Via the AFR:

Buyers of some capital city apartments bought off the plan and sold within 18 months are losing up to 30 per cent of their investment, confidential analysis by the nation’s largest valuation company reveals.

The potential loss of close to $200,000 in the value of average-priced apartments not only highlights the need for buyer caution, it’s causing lenders and regulators to turn the screws on developers and borrowers by toughening the scrutiny of building projects before final lending commitments are made.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.