Opal Tower nightmare: Devastated owners can’t sell tainted units

A real estate agent says property sales have crashed in Sydney’s Olympic Park precinct following the Opal Tower fiasco.

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Owners and investors who face losing their life savings in the Opal Tower debacle are desperate and see no way out, according to the chair of the owners’ corporation.

Owner-occupier Shady Eskander said the 36-storey tower’s apartments were worthless while remediation works continue to take place on the building, where 155 out of the 392 units are still unable to be reoccupied after cracks forced its evacuation last Christmas.

More than 200 residents of the high rise had their holidays ruined when the discovery sparked fears the tower could collapse.

Police speak with residents after an inspection of the Opal Tower by firefighters and engineers late Christmas Eve, after residents reported hearing a loud crack in the building.

“The question is, what are people prepared to pay for an apartment there? And the current figure is no value, because no one is willing to buy,” Mr Eskander said.

“It’s desperate times for owners. If you bought at $1 million and even if you sell for $400,000, how are you going to pay the bank back? Many would have borrowed 80 per cent of this total price.

“It’s our sad reality, but some people are in such severe financial stress that they can’t see any future options and want to end their life. It’s very concerning.”

Shady Eskander at a press conference earlier this year where an independent report was released on the Opal Tower building defects.

Photos of the damaged hob beam on Level 4 at the Opal Tower.

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A real estate agent, who owns and sells properties at the Opal Tower, said buyer confidence had crashed in the Olympic Park precinct.

“I’ve had ridiculous offers for $1, $2 and $5 for properties that were bought last year for close to $1 million at the Opal Tower,” Du Yang, of SY Realty Pty Ltd, said yesterday.

“But there have been offers for up to $500,000, which is nowhere near enough for owners. This drop in market confidence is not just happening at the Opal Tower. Sales have been down across the area since December.”

A view from inside one of Opal Tower apartments which was for sale last year.

According to Core-Logic, there haven’t been any property sales recorded at the Opal Tower this year. There are now three unitson the market.

Mr Yang said he listed two of these in November last year.

It was hard to spot a resident at the Opal Tower today. (AAP IMAGE/Angelo Velardo)

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“Before the evacuation the owner of the two-bedroom apartment was looking for $850,000-$900,000 and the price for the top-floor,one-bedroom apartment was $730,000,” he said.

“Now, we can’t get anything like that.”

Views from an Opal Tower apartment when they were being sold last year before the building opened.

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MIRVAC HOLDS FIRM

Property giant Mirvac is close to opening a new $300 million mixed-use development near the Opal Tower at Sydney Olympic Park.

Mirvac’s new development, Pavilions, is near the Opal Tower in Sydney Olympic Park. (AAP IMAGE/Angelo Velardo)

It says presales have “remained steady” for the Pavilions’ 705 residential apartments despite the Opal Tower building debacle nearly six months ago.

“The focus on construction quality has always been Mirvac’s priority and it is one of our most important differentiators and has been for the 47 years in which we have been operating,” Mirvac’s Residential Development NSW general manager Toby Long said.

“Inquiries and sales at Mirvac’s Pavilions development at Sydney Olympic Park have remained steady since the beginning of the year.

“Construction of Pavilions is proceeding well and we are on track to complete mid-to late next year.”

Sydney Olympic Park.

Pavilions will have the hundreds of apartments across four buildings, ranging in height from nine to 35 storeys, 1500sq m of retail floor space, basement parking for 655 cars and 1025 bicycles, a new access road and a landscaped podium.