For the past couple of years, New South Wales has been a focus in the media for building defects.
The New South Wales Government want to implement measures to assist in preventing future major defects from occurring.
Investors and Owner Occupiers have been buying off the plan in Australia for decades. However, buyers are now starting to second guess their decisions when looking into off the plan sales due to negative media coverage.
For confidence to be restored in buyers, measures need to be implemented to ensure complete transparency in all aspects and stages of the development.
The Minister for Better Regulation, Kevin Anderson is looking to introduce a risk rating system to score industry professionals on the quality of their past projects. This system will apply to Builders, Certifiers and Developers.
What Will The New Regulations Track?
- Customer complaints
- Age of the business
- Financial credibility
- Suspicions of phoenixing and more.
Why Are the Reforms Being Introduced?
The reforms are being introduced to restore buyer confidence in the off the plan sales sector.
The reforms stem from a Government attempt to prevent the repeat of incidents that occurred at Opal Tower and Mascot Tower.
What Is Next?
The next step is to present the reforms to a national meeting of building ministers. This will occur in February and be presented by the NSW Minister for Better Regulation and Innovation, Kevin Anderson.
Many other Australian states have been in the spotlight for major defects on high rise buildings. It will be interesting to see if other states throughout Australia follow suit with the reforms.
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