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Apartment crash - Boom prices?

Discussion in 'General Property Chat' started by hammer, 24th May, 2016.

  1. hammer

    hammer Well-Known Member

    Joined:
    28th Aug, 2015
    Posts:
    423
    Location:
    Darwin
    Darwin is a few years into a decline in the market (20+%) and an apartment glut.

    There are still a few OTP high-rise in the final stages of being built - yet the prices being asked are still at boom prices.

    A swish 2br is easily findable at 450k. Spend another 5 mins doing research and 400k is achievable as well.

    So why are the developers still asking 600k+ for a new OTP 2br apartment?

    17/25 Duke Street Stuart Park NT 0820 17/25 Duke Street Stuart Park NT 0820 - Apartment for Sale #122726478 - realestate.com.au

    How on earth would this sell? If so, who would buy such a thing? Do agents groan when given these listings or love em?

    Confused and genuinely interested to get some insight into their thinking.
     
  2. Depreciator

    Depreciator Moderator Staff Member

    Joined:
    15th Jun, 2015
    Posts:
    731
    Location:
    Sydney
    You live in Darwin, Hammer?
    They would be hoping people from other states - or possibly other countries - buy them without doing any research. Those developers would have their fingers crossed.
     
  3. hammer

    hammer Well-Known Member

    Joined:
    28th Aug, 2015
    Posts:
    423
    Location:
    Darwin
    That makes sense. Thanks.

    Fingers crossed indeed....:s
     
  4. big max

    big max Well-Known Member

    Joined:
    30th Nov, 2015
    Posts:
    1,040
    Location:
    Gold Coast
    No. More likely they need to go this to justify bank lending valuations. Lowering sales price immediately lowers bank security asset value of developer. But it will all correct eventually.