【Buying Property in Australia】Quality Defects of Australian House & Land

【澳洲買樓】澳洲House & Land 質量缺陷

Australian House & Land detached houses may face a series of risks, both large and small, during the construction process and after moving in, including waterproofing and structural engineering problems. A recent report in the Sydney Morning Herald pointed out that 40% of the rectification orders issued by the Building Commission for detached houses with quality defects in Sydney failed to repair the structural defects within the prescribed time frame. This has caused homebuyers to worry about the responsibilities and regulatory mechanisms of builders.

In response to this situation, the Building Commission has expanded its supervision from apartments and townhouses to detached houses. From the end of 2023, the agency will conduct stricter supervision on the construction quality of detached houses. The regulator will issue rectification orders to non-compliant construction projects, requiring builders to repair defects in a timely manner to prevent quality problems from becoming serious defects.

According to reports, complaints about the quality of detached houses have surged since the first quarter of 2024, with as many as 3,339 complaints. Regulators conducted 897 on-site inspections and the Building Commission issued 319 rectification orders, but 40% (126) did not repair the defects within the prescribed time, raising questions about the effectiveness of the rectification orders. Some consumers believe that unless actual penalties are imposed on builders who ignore rectification orders through legal channels, it will be difficult to solve this problem. It is reported that some builders have included fines in their budgets and ignored rectification orders, which has caused significant losses and potential risks to home buyers.
The Building Commission pointed out that there are still a large number of defects in the detached houses currently under construction, including major defects such as waterproofing and structural problems. One of the root causes of these problems is the lack of supervision of workers during construction, resulting in the inability to ensure the quality of construction. Although the new building commissioner has different views on the enforcement rate of rectification orders, the emergence of these problems still highlights the risks faced by detached houses. The construction industry is facing a difficult economic challenge. Some builders have had their building licenses revoked due to defects. The government plans to strengthen supervision to ensure that the quality of construction will not cause scandals again.

Although Australian House & Land is one of the most attractive properties, the potential risks and safety of buildings are also worrying factors. Therefore, garden villas, townhouses and stratified units, apartments have become the mainstream of the real estate market in Brisbane, Australia in recent years, attracting a large number of families and local immigrants at home and abroad. If you want to know about real estate information in Brisbane, Australia, please contact Changmei Australian Property Betty immediately!

【Buying Property in Australia】Quality Defects of Australian House & Land

According to the latest data from Domain, an authoritative real estate platform in Australia, it is expected that by 2025, the price growth of stratified units in major Australian cities will exceed that of detached houses. Nicola Powell, head of economics and research at Domain, pointed out that this trend will bring new trends to the real estate market, especially for new buyers who are interested in buying a home, because the prices of stratified units (Apartments) and garden villas (Townhouses) are still relatively attractive to buyers.

Powell noted: “Historically, former houses have generally outperformed strata units in terms of capital growth. However, nothing is absolute and by 2025, we expect strata units in Brisbane, Australia, to outperform houses, which is a rare occurrence.” According to Domain’s year-end summary report, house prices in Brisbane are expected to rise by 5% to 7%, while strata unit prices will rise by 7% to 9%. This makes Brisbane one of the only major cities where strata unit values will grow faster than houses, while strata unit and house values in other cities will grow at similar rates.

Powell analysis points out that this trend will make strata units more attractive for shopping, especially for young buyers to enter the market more convenient. For first-time homebuyers, this will provide opportunities for capital growth and help open their investment path in the real estate market. In contrast, as the price of detached houses continues to rise, the pressure on first-time homebuyers to buy detached houses is gradually increasing. Therefore, it is expected that the growth trend of strata unit values will encourage more people to consider strata units as the first choice for entering the real estate market.

In the past, the Australian real estate market preferred detached houses, reflecting the desire for traditional detached houses and land. However, with the economic pressure and changes in population structure, stratified units have gradually become the mainstream choice. In addition, some buyers have also begun to choose townhouses to replace independent houses with land. If you want to know more about the real estate market in Brisbane, Australia, please contact Betty, Changmei Australia Property, to get the latest market information!