If you buy apartments off-the-plan, you are off-the-planet

In the video above, Martin North and property insider Edwin Almeida delve deeper into the high-rise apartment crisis, which they have previously claimed is a $1 trillion problem for Australia.

In particular, North and Almeida discuss the collapse of developer Ralan and what the implications are for home buyers of off-the-plan buyers.

Two months ago, Edwin Almeida described Australia’s high-rise as “death traps” and claimed the problems discovered so far are “just the tip of the iceberg”:

“It’s a mess, a lot of these buildings will need to get pulled down… They’re death traps”…

While Sydney built more apartments than anywhere else during the recent real estate boom, Mr Almeida says serious problems exist in other cities and it’s simply a matter of time until more problem buildings become public.

“It’s a big problem in all states… It’s not different in Melbourne, it’s not different in Brisbane”.

“What you, I and the general public see, is just the tip of the iceberg.”

He believes there are plenty of body corporates battling with developers over major building defects but don’t want them to become public out of fear it will cause the value of their apartments to drop.

 

Comments

    • There will be new apartments – most people in Germany live in rental properties.

      The builders will have to construct apartments that do not have cracks in the walls so that tenants agree to live in them.

      • That would be hard to imagine. Using extra materials to construct a decent Foundations would cost more money. Maybe old Triguboff will be the largest landlord in the future. Well not him for long, the old Cnut is nearly dead 🙂

      • @Shawno – Meriton is already Australia’s largest landlord. They also are the largest short-term landlord on Airbnb.

    • Shawno it just means they will need more capital and collateral before they start work because they won’t be able to rely on off the plan sales money to get the ball rolling. They will still get built. And probably better because the buyers can inspect before buying.

      • Geocon, which is building something like 50% of apartments going up in the ACT, has a rule that when the off-the-plan buyers go in to inspect their units before settlement they are not allowed to bring any qualified tradies with them…no doubt because Geocon are so confident of the quality they build they don’t want buyers wasting money on stuff like that ….

  1. ErmingtonPlumbingMEMBER

    “Sydney built more apartments than anywhere else during the recent real estate boom,”

    Sydney, Sydney, Sydney,
    oi, oi, oi
    Yes we are the Champions!

  2. In 1994, most buildings in South Korea were illegal or unsafe – culminating in the Sampoong Department Store collapse that killed 502 people:

    https://en.wikipedia.org/wiki/Sampoong_Department_Store_collapse

    The initial reaction was enormous public outrage that led to months of demonstrations on the streets.

    Aussies will not even protest for one week – unless it is about Adani. The result in South Korea was a massive inspection program to strengthen or rebuild the illegal buildings.

    USA had a similar issue with one building:

    in 1978 an undergraduate architecture student contacted him with a bold claim about LeMessurier’s building: that Citicorp Center could blow over in the wind. He checked the math and found that the student was right.

    LeMessurier and his team worked with Citicorp to coordinate emergency repairs. They welded throughout the night

    With Australia’s corrupt “universities”, there is no hope that an architecture student will be smart enough to detect a design flaw.

  3. I think tbe govt should fast track building of more high rise at once so as to accommodate all the people from the other ones they built….then in a few years fast track approvals again to accommodate all the people that were moved into the recently built ones….that’s a great solution as keeps the property market going and extra revenue coming into the govt cofferes plussssss keeping the dream alive!! It’s a win win I say.

  4. How many similarities to Ireland?

    “While this is a positive development, it is vital that the mistakes of the past are not repeated, namely that the poor quality housing constructed in Ireland during the Celtic Tiger boom years does not happen again.””

    Not repeated in Ireland, but repeated in Australia.

    Those who bought houses with major defects ‘should get a redress scheme’
    https://www.thejournal.ie/redress-scheme-for-defects-homes-3814207-Jan2018/

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