A report from ABC News on Australia. "We are witnessing more naked developers as half-finished projects dot the landscape of our major cities. As the year progresses, many more operators who've pushed the boundaries will join them. 'Areas of oversupply will see a bit more chaos in the next six to twelve months,' said Scott Gray-Spencer, local head of capital markets at CBRE."

"Mr Gray-Spencer sees areas more than 10 kilometres from the city centres of Sydney and Melbourne, and parts of Queensland, as the most vulnerable. Even if developers do get enough buyers, there is an increasing risk that their customers can't come up with the money. Banks were willing to lend borrowers more money two or three years ago amid the property boom, when buyers put down their deposit and signed a contract."

"Now property valuations are lower. 'The bank might say, 'I'm now only going to lend you x per cent' rather than the original amount, and the purchaser will have to come up with the extra cash from somewhere,' property lawyer Richard Harvey warned."

"Most analysts think there's worse to come for developers over the next six to 12 months. 'If you're settling a project between now and Christmas, you'd want to be closely looking at your defaults,' EY's Luke Mackenzie said."

"For the most part there is still strong demand for good development sites and projects offloaded by stressed operators. Mr Gray-Spencer represents some of those buyers. 'There's one of my clients who's in the process of trying to buy distressed stock and he has had 2,000 apartments put to him in different forms.'"

The Daily Mail. "A Melbourne couple who bought a luxury apartment for $410,000 eight years ago are set to lose $100,000 because the building is covered in combustible cladding. Reg Ellery and his wife, who asked not to be named, purchased the one-bedroom apartment in the Trilogi building in Prahran, southeast of the CBD in 2011."

"The couple initially intended the apartment to fund their retirement, but discovered the cladding problem after Mr Ellery sought a property evaluation six months ago. The couple have since listed the property for a fraction of its original asking price at $310,000 - but they said the decision was to avoid losing money as prices cool."

"Several other apartments in the Clifton Street complex are also asking much less than their original asking price, with one dwelling being listed for $205,000 less. Other apartments in the building, which was sold off-the-plan, are being advertised for prices that will produce property losses of between $22,000 and $70,000."

"Julie DeBondt-Barker, who is helping Mr Ellery and his wife sell their property, said owners had been dealt an unfair hand. While the news was bad for Mr Ellery and his wife, Ms DeBondt-Barker said the sale could be a great opportunity for buyers looking to enter the property market. 'It's a very good buy for an investor looking for high rental yield but if you understand how flammable it is, would you want to live there?' she said."