Australian Financial News, Jan. 10: in an early warning of a loan to Opal Tower for its bank clients, property valuation said: owners of Sydney Olympic Park Opal Tower may have to wait at least two years before they can sell their apartments. And face more than 16% of the loss.
Preston Rowe Paterson, the country`s leading real estate valuer, said the, Opal Tower accident could create more problems, including law lawsuits initiated by owners` groups, possible "lower rents" and "higher insurance costs."
Greg Sugars, president of Preston Rowe Paterson, said the company had learned that at least one bank would no longer use Opal Tower`s apartment as an asset mortgage for mortgage payments unless further notice.
The newly built 36-story Opal Tower was partially evacuated by government last week, and engineers have identified "design and construction" problems in the high-rise apartment and need further investigation. Photographic: Dominic Lorrime
"there is no doubt that the building`s reputation has been badly damaged."
The newly built 36-story Opal Tower was partially evacuated by government last week, and engineers have identified "design and construction" problems in the high-rise apartment and need further investigation.
Builder Icon is a contractor, developer Ecove and Sydney Olympic Park Authority jointly developed the property. The much-watched structural accident in the building prompted developers to re-evaluate their projects.
Preston Rowe Paterson said the risk costs of damage to the building`s reputation are difficult to quantify in the short term because transactions within, Opal Tower are not likely to occur until the dust of the building`s structural problems and potential law litigation issues settles.
Mr. Sugars said: "past major Australian housing accidents and subsequent market uncertainties demonstrate that this period of time can be as long as two years between major accidents and subsequent market transactions, such as the Botanic Ridge neighborhood accident in Cranbourne, Victoria.
The bank used the national real estate valuation company to assess the risk of apartment loans after a fire on the exterior wall of Lacrosse, 673 Dockland 673 La Trobe Street, Victoria. The accident posed a great deal of risk / uncertainty to potential buyers and the value of apartments in the building fell sharply.
The Lacrosse building fire accident occurred on Nov. 25, 2014. The value of apartments in buildings has fallen by an average of 16 percent from the original purchase price, according to an analysis of 51 real estate transactions since then.
Corelogic records show a change in the median price of five-year homes in the Dockland area by-3.2%.
The real problem, Mr. Sugars said, was the confidence of buyers and the average time between the listing and sale of apartments in the above-mentioned fire at the Lacross building, that is, 73 days from the market to the sale of properties in the Dockland district and 169 days for the apartment in the fire building.
Apartments in Opal Tower were priced at 1.8 million of the five hundred and ten thousand to 4 bedrooms in one room, with an average price reported to be just over eight hundred and fifty seven thousand nine hundred and ninety nine.
