Yahoo Finance Buyers exploit Opal Tower fallout, offering as little as HALF for nearby apartments
The Opal Tower debacle has had major ramifications on the Australian property market as a whole, but now sellers in nearby residential towers are being caught up in the fallout.
Apartments listed for sale in neighbouring buildings are suffering from low buyer interest, with some offers from keen bargain-hunters of as little as half the asking price, according to Domain.com.au.
SY Realty, had listed two apartments for sale in the Opal Tower before Christmas with a price guide of $500,000.
“I’ve had several inquiries and offers because the buyers think they can rip off the owners,” SY Realty selling agent Du Yang told Domain.
When asked by how much, he replied: “By half.”
Unsurprisingly Opal Tower developer Ecove, which still holds of the building’s apartments, has suffered most from the pullback at its other developments nearby.
Only 60 per cent of its neighbouring Boomerang development, which is under construction, have sold so far.
Meanwhile, in Ecove’s completed Australia Towers nearby, several apartments listed for resale are suffering a similar fate where buyers are massively underpricing their offers.
Deepak Kumar, selling agent at Village Quay Real Estate, told Domain the Opal Tower news has exacerbated an already slow property market in Sydney Olympic Park and nearby suburbs of Wentworth Point and Rhodes.
“People are a little bit concerned to buy. I think prices have been affected a little bit as well. After the news I haven’t got any offers so it’s definitely hard to say, but interest has dropped a lot actually,” he said.
“A lot of the market isn’t that great at the moment; it’s on the slow side. The Opal Tower has affected it more than the actual market. Enquiry has dropped off.”
Meanwhile, Hualei Properties, also has a listing with Ecove’s Australia Towers with a price guide of $700,000. It has been on the market for a year and has had less than a dozen interested buyers in that time, according to Domain.
“So far I’ve only shown six people in the past year. It’s a very slow market, and Opal Tower has made it even worse,”Steven Hou, selling agent at Hualei Properties said.
Make your money work with Yahoo Finance’s daily newsletter. Sign up here and stay on top of the latest money, news and tech news.
Now read: How to become a millionaire on a $55,000 salary
