What Are the Warning Signs Before the Australian Property Market Crashes?
What Are the Warning Signs Before the Australian Property Market Crashes?
The title might sound alarming, but despite predictions from experts and the media for a major market crash in 2024, it hasn’t happened. Many articles show how the property market has stayed strong. But does that mean all investments are safe?
Even when the economy looks steady, there are key risks to watch out for. Let’s take a look at some red flags that could spell trouble for property investors.
Big Risks to Watch For
One of the biggest things to check is whether developers are in financial trouble. If they’re struggling, it can lead to delayed projects, poor quality builds, or even losses for buyers. Here are some recent examples:
- Bensons Property Group: This major developer went into voluntary administration in December 2024, leaving behind $800 million in unpaid debts. One of their projects, Chevron One Residences in Surfers Paradise, now faces an uncertain future. (Source: Herald Sun)
- AVID Property Group: Their Harmony Estate on the Sunshine Coast was hit with a stop-work order due to approval issues. Buyers who had signed contracts were left in a tough spot. (Source: InDaily QLD)
- Star Entertainment Group: Known for Brisbane’s Queen’s Wharf project, this $3.9 billion development is under pressure, with the company seeking tax relief to avoid financial collapse. (Source: The Australian)
What’s Next for Queen’s Wharf Brisbane?
Queen’s Wharf is set to be one of Brisbane’s most exciting landmarks. But with Star Entertainment’s money troubles, many are asking: what’s going to happen? While no one can predict the future, here are some risks for off-the-plan buyers:
- Delays: Financial stress could slow down the project.
- Unfinished Projects: If the developer’s issues worsen, work might stop completely.
- Lower Quality: To save money, developers might cut corners.
- Price Drops: Bad press could make it harder to resell or rent out.
- Deposit Risks: In the worst-case scenario, getting your deposit back could be tricky.
How to Stay Safe When Investing
So, how can you protect yourself when buying property? Here are some practical steps:
- Check Where Your Deposit Goes: In Queensland, deposits for off-the-plan purchases are kept in trust accounts, which adds a layer of safety.
- Look for Sunset Clauses: Your contract should have a clause letting you back out if the project takes too long.
- Do Your Homework: Stay updated on the developer’s financial situation.
- Get Legal Advice: A property lawyer can check your contract and flag any risks.
Every investment comes with risks—there’s no such thing as a sure thing. The key is knowing what risks you’re taking and being prepared. That’s where we come in.
At Genie Homes, we’re not here to push you into anything. Instead, we’ll work with you to explore your options, explain the risks, and help you make informed decisions. With the right research and support, you can invest with confidence.
Disclaimer: This article is for informational purposes only and does not constitute legal, financial, or investment advice. Readers should seek professional advice tailored to their individual circumstances before making any property investment decisions.
