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After 20 years working with property developers and builders, one of Ray White Projects’ partners shares how agents can best deal with the build quality drama and debate that has flared up in NSW.
Builders and developers are caught up in a media storm in NSW right now, as high-profile new properties in Sydney make headlines for their defects and sub-par build quality.
Owners corporations and commercial building owners alike are also facing the prospect of huge insurance, reparation and adjustment bills, as new cladding law takes effect due to fire safety concerns.
Managing director and partner at Ray White Projects Eddie Mansour is aware of a spate of building defects and questionable proposals from developers cropping up, amid a flurry of new estates and apartment buildings coming out of the ground in NSW. This has been largely spurred on by government investment and new land releases.
“We saw market conditions get buoyant and demand for apartments rising,” Mr Mansour told REB.
“There was a lot of activity, like rezoning, coming along with that, and a huge number of apartments went up in pockets across Sydney.”
Mr Mansour believes a group of dodgy developers and builders is spoiling the reputation of the masses. In particular, builders and developers who have skyrocketed their activity in response to new land releases and price cycle highs in the last few years warrant caution from buyers.
“The biggest thing for agents to know is who they are working with. For example, when we take on a project, we want to know in detail who the developer, architect, consultants and project managers are,” he said.
“There are a small handful of developers who don’t do the right thing, but I’m proud to say the projects I’ve worked on have been great — and any issues or hiccups post-construction have been dealt with or rectified.”
For Mr Mansour, buyers and agents shouldn’t lose sight of the fact that the market of builders is also heavily populated with companies that are family-run, and have been operating in Australia for decades, with a string of solid developments to their name.
In the absence of effective regulation, Mr Mansour believes the market will largely weed out problematic developers and builders as time and awareness rolls on.
“There is a lot of focus and acknowledgement on people who aren’t doing a good job — buyers are more aware,” he said. “Agents are more aware.”
Ray White Projects is “cautious” with its approach to all new business partners and dealings, and has a blacklist of sorts when it comes to the projects the Ray White name gets behind.
“We have a name and a reputation to protect… we only work with who we trust and know to have a good record,” Mr Mansour said.
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