The latest figures from core logic have revealed over a third of newly built apartments in Melbourne are being valued less than the purchase price by the time they are built and the new purchaser settles. There has been many cases of buyers having to abandon the purchase and lose their deposits given banks being unwilling to lend on this basis.
However this figure is a big improvement well below the 50 percent rate two years ago. Notable buyers advocate Fran Valentic stated that this was a reflection of an improvement in size and standards on new apartments following the introduction of new guidelines for the constructions of new apartment blocks and that developers are increasingly designing projects with occupiers in mind.
This information should serve as a warning to keep in mind the flow of new apartments that are coming through in the near future especially as the Whitehorse area around Box Hill is has approx. 4768 new apartments in the pipeline with inner city areas anticipating another 8000.