Email By business editor Ian Verrender Posted August 01, 2019 14:32:44 Photo: Off-the-plan buyers were often lured by the promise of blue sky profits in a booming market. (ABC: John Gunn) Related Story: More than 3,000 units in limbo as one of Australia’s major property developers collapses Map: Australia The cracks first appeared in the buildings. Now they have begun to spread across the industry.The collapse of two high-rise apartment developers — the Sydney-based Ralan Group and Melbourne’s Stellar Group — within the past month has ignited the property industry’s worst fears: that large numbers of would-be buyers either are unable or unwilling to settle on pre-sold apartments.Lured by the prospect of easy profits in a booming market, property investors snapped up units off the plan, armed with a small deposit and in many cases a non-binding assurance from a financier, usually a bank.But the property downturn in the past two years has seen sharp falls in apartment prices in Brisbane, Sydney and Melbourne, adding to the already depressed markets in Perth and Darwin.Off-the-plan buyers in a sticky situationThat’s put many would-be investors under water, left holding agreements to pay boomtime prices, usually well above the current market rate.And that’s… Read full this story
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