Opal Tower fiasco: the latest headache for owners
Owners of Sydney’s Opal Tower development have launched a class action against the state government after being forced out of their homes and unable to rent or sell their properties, and there are mixed opinions on what this means for the future value of new builds in NSW.
Documents lodged with the NSW Supreme Court on Friday revealed residents were suing the government-controlled Sydney Olympic Park Authority for breach of warranty and of the Home Building Act, which states developments must be built according to plans and specifications.
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In addition, the lawsuit would also seek compensation for losses due to declines in the sale and rental value of apartments within the tower since it partially collapsed in December 2018, as well as lost rental income during the seven month long remediation works for the development.
The action is being led by Opal Tower resident Terry Williamson, who is being represented by law firm Corrs Chambers Westgarth.
While the case could act as a precedent for other structurally faulty apartment buildings in Sydney, CBD-based agent Joseph Fairchild of Metro Realty said it was unlikely to significantly suppress demand for new apartments as long as buyers stuck to reputable developers.
“If you look at projects like Crown or Lend Lease’s Darling Square, these are very credible developers with no issues whatsoever that we have sold properties in recently and I have not had one client ask me about structural issues or whether they are going to collapse,” Mr Fairchild said.
He added that buyer demand for new apartments was actually picking up following recent cuts to interest rates, and that there was still a solid market for quality, well-located off-the-plan properties.
“We are having no issues with selling off-the-plan, in fact there is more demand in the market than a month ago,” Mr Fairchild said.
“That’s so long as it is from a credible developer that doesn’t use dodgy contractors and really thinks about creating a community around the development, rather than making quick money and getting out of there.”
