“There are many factors outside the control of the builder that can affect the timeframes when building is completed,” Mr King said. “These include unpredictable weather, criminal damage and delays caused by authorities.” Mr King said off-the-plan sales were crucial for meeting the State Government’s planning objective of creating medium to higher-density housing in metropolitan Melbourne, and this decision was a severe setback. “Off-the-plan sales have been very attractive to young first home buyers opting for apartments in inner city areas,” Mr King said. “Projects will now be under enormous pressure and banks will be more reluctant to loan, inevitably resulting in builders pulling out from the market and jobs being lost.” HIA is calling on the Victorian Government to amend the Sale of Land Act to take into account the risks and delays outside of the builder’s control.
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A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.