Near record low interest rates and talks of a property recovery has done little to instill confidence in a struggling residential construction sector.
The Age’s Chris Vedelago today reports:
Melbourne’s outer-suburban property market is facing a serious slump as distressed buyers and builders cancel one in every three new home purchases.
The collapse in sales could have serious repercussions for the state economy and the building industry, which employs more than 250,000 Victorians.
“We’ve never seen this before, so it’s a very strong signal that the fundamentals are wrong,” said Colin Keane, director of analyst group Research4, who compiled the new research.
Meanwhile, The Courier-Mail’s Michelle Hele reports apartment giant Mirvac has been forced to abandon two developments in Queensland as the market slows:
OFF-the-plan unit buyers have had their deposits refunded as a major Queensland property developer puts two major projects in Hamilton and Townsville on ice.
Mirvac has postponed development of its $300 million Foreshore Hamilton project at Hamilton in Brisbane and the final stage in its Mariners Peninsula development in Townsville, with confidence in the Queensland market at an all time low.
» Slump looms as a third of new home sales abandoned – The Age, 28th November 2012.
» Units put on ice as sales stall in Queensland – The Courier-Mail, 28th November 2012.
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