Nasty, via the AFR:
One in 10 off-the-plan apartment sales have fallen over during the past three months as lower valuations due to weaker demand and oversupply prompted banks to reject final loan approvals, forcing buyers to give up millions of dollars in deposits.
Out of around 35,000 off-the-plan settlements between March and June, 3041 have collapsed due to problems with a lower valuation, an analysis by Digital Finance Analytics showed.
This amounted to a potential loss of $87.6 million in deposits alone, not including the other charges developers impose when buyers pull out of the sale.
I was chatting yesterday with a supplier to two major Melbourne developers who, he noted, have between them moth-balled twenty highrise projects in the past few months owing to weak demand and difficult financing:
The construction bust of 2021 is going to be a doozy: