Faulty apartments create generation of “mortgage prisoners”

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By Leith van Onselen

Australia’s apartment market is in crisis. On Christmas Eve, all residents at the 392-apartment Opal Tower high-rise were evacuated after serious cracking sent soundwaves across the complex. And then over the weekend, residents of a 12 year-old, 10-storey high-rise apartment complex in Mascot were evacuated after cracks were discovered in the foundation supporting the building’s primary corner.

Back in February, Bronwyn Weir – the construction lawyer who last year co-authored a key industry report – said “Opal is the manifestation of a system in trouble” and “the tip of the iceberg of what’s potentially going on in buildings”, with more building failures similar to the cracks that impacted Sydney’s Opal Tower inevitable.

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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.