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Off-the-plan buyers of Australia’s biggest apartment complex – Australia 108 – are haemorrhaging losses of up to 25%, after valuations plunged from their 2015 contract date. This has left many buyers better-off forgoing their deposits and walking away. From The AFR:
The local buyer, who asked not to be named, bought the apartment for $972,000 in 2015… With settlement due in December, the apartment has been valued (twice) at $725,000, a fall of 25 per cent…
Having paid a 10 per cent deposit of $97,200, he could be financially better off walking away than trying to fund the valuation gap…
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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.