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New apartment block more than 50% units not sold

Discussion in 'The Buying & Selling Process' started by A.Lee, 7th May, 2016.

  1. A.Lee

    A.Lee Member

    Joined:
    29th Apr, 2016
    Posts:
    5
    Location:
    Australia
    I am interested in getting a unit in a near-to-completion block. However before I do so, I thought it is best to ask for your opinions.

    I always heard that developers normally only start to construct an apartment block when 75% of units are sold. However this block that I found has more than 50% of units not sold despite it nearing to the end of construction.

    Is there something to worry about?
     
  2. Jerry O

    Jerry O Well-Known Member Premium Member

    Joined:
    21st Jun, 2015
    Posts:
    360
    Location:
    NSW / Melbourne
    Whereabouts is this located? Have you checked the surroundings in terms of what stage their developments are at the moment? Whose the developer?
    If its a reputable developer, they are probably confident that the units will be sold in a short amount of time or they have the cash reserved to cover any of this as part of their contingency plan.
     
  3. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    925
    Location:
    Qld
    The 75% sold usually relates to finance. If the developer has the finance and the confidence to build with fewer pre sales, I would not view this as a negative.
    Marg