Foreign investors are selling Melbourne`s iconic high-rise apartments, such as Australia 108, Aurora and Premier Tower, at discount prices on Gumtree, a classification site, ahead of the settlement of contracts, as they now struggle to access bank financing.
Among the discounts, an investor in Kunzhou is selling a 49-square-meter one-bedroom apartment in Australia 108, the tallest residential building in the southern hemisphere, for 459000 yuan, which he bought for nearly 500000 yuan.
"cut the price!" The advertisement for the apartment says so.
In Premier Tower, developed by Singapore developer Fragrance, a two-bedroom two-bath apartment is being sold for 650000 yuan, well below the asking price of 700000 yuan for a similar size two-bedroom apartment. And the sales of this property has also remained at around 74%.
An apartment marketing agent on Gumtree says she has a lot of Premier Tower apartments for sale. "about half of these buyers can`t get a loan." She said.
Other cheap developments include Far East Consortium`s multi-purpose residential building, West Side Place, which includes a new Ritz-Carlton Hotel.
The Gumtree ad, written entirely in Chinese, said the first condominiums under development had been "snapped up" and urged buyers not to miss the "King of Melbourne" property. However, its pricing also appears to be lower than that of the project`s marketing agent, Gauli International (Colliers International) online.
Williams (Paul Williams), a mortgage broker at the stricter standard Mortgage Choice South Melbourne, said a growing number of local real estate agents were contacting his office to find solutions for those who had not yet secured financing.
"We are assisting overseas buyers (expatriates and non-expatriates) who are currently unable to settle for high-density properties because they may have bought the house a few years ago and obtained prior approval before the lender policy change. But since then, foreign income assessment standards have become stricter, and LVR restrictions have become stricter. " Williams said.
"as mortgage brokers, we help these clients by converting lenders. Unfortunately, some borrowers who buy flats have to sacrifice down payments, sell them for less than they pay, or raise a lot of extra money. "
"in order to ensure better results for customers, we remind those who do not like to take risks not to buy properties in the inner city or on the edge of the city without being able to afford a decline in valuations or a decline in the credit rating of lenders."
Williams said some homeowners saw a glimmer of hope as investors` failure gave them the hope that they could grab apartments at ultra-low prices.
"potential buyers of apartment flats must first talk to professional mortgage brokers because we understand the appetite of each lender and can help ensure the right financing," he said.
