Buyer fears about high-rise apartment fires and construction risks are causing sale times to blow out by more than 60 per cent compared with a year ago, creating bottlenecks for sellers.
Lenders are also making it tougher for borrowers to buy apartments by blacklisting some postcodes, increasing deposits and lowering valuations for off-the-plan purchases.
“Buyers are telling me they do not want to buy into anything new,” says Patrick Bright, a Sydney-based buyer’s agent. “They do not want to buy into a problem."
Cate Bakos, a buyer’s agent in Melbourne, adds: “Buyers are demanding extra due diligence. They don’t want anything to do with buildings that might have potentially flammable cladding or structural problems.”