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Some Appear Concerned That They’re Going To Lose Money

A report from 9 News in Australia. “The Opal Tower in Sydney was sold as luxury living, the best money could buy. Potential buyers understandably believed that with the backing of the State Government they had nothing to fear. Just four months after The Opal Tower’s doors opened, a loud cracking sound reverberated through the building, sparking a mass evacuation. It became very clear that something was very wrong.”

“‘It’s the Australian dream turned into an Australian nightmare,’ says resident Andy Neverly. Mr Neverly paid $840,000 for his high-rise apartment. ‘I don’t think (the apartment) is worth anything.'”

From Domain News. “A dozen suburbs have dropped out of Sydney’s million-dollar house price club as the property market continues its steepest downturn in decades. Roselands, Sutherland and Kellyville Ridge were among the suburbs where the median house price dropped below $1 million last year.”

“With house prices down 11.4 per cent since the market peak in mid-2017, about half of Sydney suburbs now have a median below $1 million, according to the latest Domain Group data. ‘We’ve been reporting a $1 million median since 2015. I think buyers had a real acceptance of that million dollar mark,’ said Domain research analyst Eliza Owen. ‘[But] they might be more hopeful as more suburbs fall below a million dollar median sales price, however it’s still quite expensive.'”

“‘The higher end of the market tends to lead when it comes to price declines,’ Ms Owen said. ‘Suburbs with higher values have had more significant declines, which have put them under the million dollar threshold.'”

From ABC News. “House prices in Tasmania’s capital city have fallen for the first time in years, according to CoreLogic. ‘Hobart absolutely is starting to slow down,’ said Corelogic’s executive research director Tim Lawless. ‘If we do see a few more months where the market has flattened out or some negative readings, that will be a pretty firm sign that the market’s peaked out.'”

“Real Estate Institute of Tasmania president Tony Collidge said some buyers were also being cautious due to significant prices falls in Sydney and Melbourne. ‘Some appear concerned that they’re not buying into a market at the top end and if market prices go down, they’re going to lose money,’ he said.”

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This Post Has 28 Comments

  1. ‘It’s the Australian dream turned into an Australian nightmare…I don’t think (the apartment) is worth anything’

    Chin up Andy, it was cheaper than renting!

    1. I’m confused about which part of this tale of woe was ever a dream. Overpaying for a skybox that epitomized everything wrong with the housing bubble? Or was the “dream” the untold speculative windfall that sadly failed to materialize for Andy the Bagholder?

  3. ‘House prices in Tasmania’s capital city have fallen for the first time in years, according to CoreLogic. ‘Hobart absolutely is starting to slow down’

    Something about Australians I don’t know if I’ve mentioned. No matter what kind of crater is going on, the media will latch on to any place where there’s a boom. And recently that’s been Hobart. No more!

    The other thing Australians are obsessed with is real estate predictions. I prefer to focus on what’s happening.

  4. ‘about half of Sydney suburbs now have a median below $1 million, according to the latest Domain Group data. ‘We’ve been reporting a $1 million median since 2015’

    So three or four bubble years gone-poof!

      1. Median must be about 400k to support 3x income prices. Totally possible in a two income household of RE agents selling condos in 2016.

  6. Some questions and answers concerning Australia’s Opal Tower …

    Q. Why wasn’t there any discussion to build the tower from a more sturdy material such as paper mache or damp sand?
    A. There was. But the decision to use spaghetti instead was unanimous.

    Q. If I rent or purchase an apartment, should I make a will?
    A. Yes and buy lots of life insurance, your family will be happy.

    Q.How much profit did the developer make?
    A. 5 trillion.

    Q. If the building leans over do the floor areas stay the same or do they get measured horizontally, hence increasing the stated measurement?
    A. No. The cracks negate the gain.

    Q. Who built Opal Tower?
    A. Some tight arse uncaring bunch of a holes.

    2. “There was. But the decision to use spaghetti instead was unanimous.“

      Depending on the noodle type, this could raise some major concerns for the realtors that require ramen noodles to survive. If more shacks are built with this new innovative building practice, it may cause a major shortage and the realtors will starve.

      1. The Maruchan Company will unveil a new discount ramen noodle product in 2019. Realtor Ramen will contain additives including sawdust and kelp byproducts to feed hungry former shack sellers. Goes great with a burn barrel and Colt 45.

    3. If the building leans over

      Fortunately, there is little in its path should it go all dominoes during the next earthquake.

    1. “The mismanaged cold wallet is only one of the problems besieging QuadrigaCX. Differences with at least three third-party partners has tied up most or all of an additional $53 million in assets.”

      (Keep reading, it gets better)

      “Making matters worse, many QuadrigaCX customers continued to make automatic transfers into the service following Cotten’s death.”

      (Money, I want you to meet Rathole)

      “On Monday, the site became inaccessible with little explanation, except for this status update, which was later taken down. On Thursday, QuadrigaCX said it would file for creditor protection as it worked to regain control of its assets. As of Thursday, the site had 115,000 customers with outstanding balances.”

      Poooooof.

      “The debacle should be unthinkable for any financial institution, but sadly it’s just one of many similar issues to hit a cryptocurrency exchange in recent years.”

      Do tell.

        2. They should image the laptop’s hard drive as a virtual machine, and upload it to a public torrent site. Someone might be able to crack it.

    2. Modern day D.B Cooper. Living with a life threatening disease you would think one would consider, at the very least, leaving this information to his family. What’s even more crazy about this news is that it will likely send bitcoin into another plunge.

    1. liquidating

      Just a couple of years ago they were leaking out a$Trillion a year. Now just a big sucking sound.

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