How Opal Tower affected the real estate industry
In recent months, the decision was made about the Opal Tower, Australia’s most important building.
From the last days of last year Opal Tower began to suffer some structural damage. Following these damages, the Opal Tower entered an intensive process of inspection. The building has long been studied by engineers and experts. This research has caused controversy about the quality of building and construction materials across Australia.
The NSW Planning Office announced on Friday what the structural damage in the building was and how to repair it.
According to the report, it was revealed that the construction crane in the building was not designed according to the standards of the National Construction Code. In the report, the ‘major’ correction studies should be done to ensure that the Opal Tower and its structural components meet NCC standards.
Opal Tower’s situation has affected the construction and real estate sector in the country.
Peter Koulizos, chairman of the Property Investment Professionals of Australia, said “From a property investor’s perspective, unfortunately the value of the property will probably drop significantly, even if it is rectified and it gets a clean bill of health,” he said.
“That’s right, and I feel very sorry for the people that bought in and/or are living in … because even if the building is rectified to 110 per cent of what it should be, most people would just remember how … the place that has building defects.
“Poor old property [investors] or owner occupier can’t claim loss of value from that asset from anyone. Loss of rent, well, maybe if they had landlord’s insurance, they would have an opportunity to do that, but it’s unfortunate, very unfortunate.”
According to Mr. Koulizos, database modification is a wise method.
“The better informed consumers are, the better decision they can make, so provided there’s no confidential information like there’s exactly… it tells you how much it costs to build and things like that, but if it’s looking for a certificate, which is what certification refers to, then that should be fine,” he said.
Sevdenur Demir / [email protected]