Off the plan settlement risk coming: Charles Tarbey

The Century 21 Australia chairman Charles Tarbey has warned the market could be hit with an oversupply of new properties.

“Then all of a sudden people get a bit frightened and concerned about settling," he told the REB website.

"They’d rather just lose their deposit and walk away or find a way out than to go ahead with purchasing an investment property.”

Mr Tarbey said there will be people who have put deposits on two or three properties.

“They’re not major investors, they are mums and dads that are starting out.

"There will be a few of them, and they are going to have to sit there and question whether or not they can come up with the extra cash if the valuations don’t meet the contract price that the properties are sold at.

“That’s the greatest risk.”