NSW developers will now be able to make better decisions with their construction projects thanks to a brand-new digital tool that measures risks using independent data.
The new digital tool, created by Equifax and known as iCIRT, will provide consumers, financiers and insurers thousands of data points to determine the trustworthiness of a developer and their construction projects.
“These ratings will provide an independent assessment from a trusted source,” Minister for Better Regulation Kevin Anderson said.
The iCIRT pulls together key data endorsed by NSW Fair Trading and considers credit ratings, the relationships between development counterparties, the entity’s history in corporate dealings and nominated directors in order to show the character, capability and capital of each developer.
The iCIRT also rates housing projects within the state from one to five stars, helping consumers decide on who to buy from.
“Ratings will paint a clearer picture of a developer’s trustworthiness and the predictability of whether they are likely to construct a compliant and safe building and have the capacity to fix issues if they do arise in the future,” Minister Anderson said.
“These ratings will also be a powerful weapon in our fight to stamp out phoenixing, exposing risky developers with a history of leaving owners high and dry after they have moved in.”
Executive Officer of Owners Corporation Network Karen Stiles said the new digital tool will take the guesswork out of buying an apartment.
“The last thing prospective owners need is to spend their life savings buying into a problematic building, but in the past consumers have had to rely on the developer’s word that the property is a safe and sound investment,” Executive Officer Stiles said.
“This tool will give each development a clear risk rating that the buyer can weigh up before committing to a purchase.”
Minister Anderson aims to have the first fifty developers voluntarily rated before the end of the year, stating that those with a strong track record will reap the benefits of the new tool.
NSW Developers are also encouraged to publically display the rating for the specific entity responsible for each project on their websites and consumer-facing materials.
“As well as making a project more attractive to consumers, we anticipate that the financial sector will use these ratings to determine which projects they will lend to, and those that may qualify for new insurance products such as decennial liability insurance,” Minister Anderson said.
“And for those with a chequered past or a history of disappearing after the sale – there will be nowhere to hide.”
The provision of the new digital tool is part of a broader strategy to restore public confidence in NSW’s multi-storey apartment market by lifting standards and increasing accountability.
SOURCE: NSW GOVERNMENT MEDIA RELEASE