Residents of Sydney’s embattled Opal Tower complex are facing possible financial ruin with no solution to the disaster in sight.
The nightmare began on Christmas Eve, when residents of the four-month-old, 36-storey building reported hearing a disturbing, loud “cracking” sound.
Those living in 51 units deemed unsafe to occupy were promptly evacuated, and as investigations are still under way, the cause of the building’s damage is not yet known.
Realestate.com.au chief economist Nerida Conisbee said it was impossible to predict just how much money Opal owners stood to lose, as any potential price drop would depend on whether or not the issues could be resolved.
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But she said the catastrophe would have significant ramifications for the already struggling new apartment market.
“I can say that an incident like this is highly unusual in Australia where we have strict building regulations,” Ms Conisbee said.
“It will impact upon confidence in the new apartment market. This market has taken a hit already with the drop in investor activity.”
Ms Conisbee said the debacle was also a timely reminder for potential buyers.
“It is also a reminder that if you are looking to buy a new apartment, the developer’s reputation and track record is very important,” she said.
“Also, that it is vital that you do your research properly before buying.”
Ms Conisbee’s stark warning comes as one resident of the beleaguered apartment complex revealed to reporters that owners were facing financial ruin.
Mark O’Brien, who rents an apartment in the block, told the Daily Mail he knew of one owner who had paid $1 million for her flat.
“The apartments are quite nice … But beauty only goes skin deep in this case I guess,” Mr O’Brien told the publication.
“I feel sorry for the poor people who bought a place there. I saw there was a young lady who bought one, paid a million for two bedrooms … that’s just awful.
“You’d be lucky to get 40 per cent of what you paid for it. These people will be crippled for life.”
Meanwhile, AAP has reported that structural engineers investigating the building’s cracks believe a prefabricated concrete panel was not inherently faulty.
Instead, they think the damage was potentially caused by how it was installed, or possibly by problems in the design or construction of the building itself.
Yesterday, NSW Minister for Better Regulation Matt Kean announced a crackdown on “cowboy” certifiers across the state to address public concern about the building certification process.
The building’s developer, Icon, and builder, Ecove, are both yet to reveal what exactly went wrong.
“No one has got an explanation for it,” Ecove director Bassam Aflak said during a media conference on December 29.
“We honestly don’t know what has caused this panel to fail. That’s the reason why it’s taken so long to give residents information.
“There are a lot of big companies involved that have done the right thing so it would be unfair to criticise them for one failure when we’re still investigating the cause.”
Residents who were evacuated are being housed at neighbouring hotels, however some have been moved twice as their temporary rooms were needed for prior bookings over the busy holiday period.
- news.com.au
