Is Off The Plan Still On The Cards?
Off the plan apartment sales have seen a hit but a newly released survey of more than 200 developers reveals that it hasn’t been as bad as expected.
60% of developers stated that their sales declined by 25%, whereas fewer than 20% of developers stated that their sales rate have halved or more. However, according to CoreLogic data, approximately half the off-the-plan properties currently being completed are being valued at less than the original contract price.
While more than two thirds of developers cited local owner occupiers as their main markets, three quarters agreed that the pandemic was affecting buying decisions. The report stated hat the top three challenges to the market were
1. Economic uncertainty
2. Availability of finance and
3. Changes in government legislation.
However not a single surveyed developer conveyed any concern of the increased supply within the market, which is one of the top reasons the media placed a putting off-the-plan property market on the brink of a decline.
Real estate agencies, on the other hand, have experienced a significant downturn in sales. Only 15% of real estate agencies managed to maintain a consistent level of sales, while the other 85% suffered from a reduction in businesses to varying extents.
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