Banks Ease Away From Apartment Lending
The move away from apartment development has left a gap for non-bank lenders.
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Banks have been warier of lending to apartment developers over the past financial year, allowing the ever-expanding pool of non-bank lenders to enter the market.
According to analyses from property and construction consultancy Plan1, the banking sector’s exposure to apartment developers fell 7% to $32 billion in 2017, when apartment construction was booming. It was 18% lower than the peak $39 billion exposure of 22008.
As of June 30 of the 119,000 apartments under construction, worth about $46 billion once completed, the banks have exposure to approx. 70%.
The big four banks are, perhaps to be expected, wearing the brunt of the exposure with 76% of the funding coming from ANZ, CBA, NAB and Westpac. According to Plan1 co-founder and director Richard Jenkins, this figure represents the bank’s lowest share of the market since mid-2018.
While banks slow their approach to apartment development lending and increase their barriers to funding through pre-sales and large deposits, smaller, non-bank lenders are filling the void.
MaxCap, one of the nation’s leading non-bank commercial real estate lenders has been one of the more active entities in recent years.
In a recent interview with the Australian Financial Review, MaxCap NSW director David Oudshoorn outlined his confidence in the Sydney market over the next few years.
Mr Oudshoorn isn’t the only one bullish about the market with Qualitas, Wingate and Pallas Capital all providing funds to developers.
The nation’s biggest lender – the Commonwealth bank – revealed in its half-year results in February that only 35 of its 77.5 billion exposure to commercial real estate debt was to developers.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
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There’s no shortage of design inspiration online but nothing beats the joy of spending an afternoon immersing yourself in a good interior design book. Edited, carefully curated and, above all, designed, these titles take you behind the scenes of some of the world’s most beautiful interiors in a considered way. Think of it like the difference between listening to a few tunes on Spotify versus releasing a thoughtfully crafted studio album. We’ve assembled our top six of interior design books on the market right now for your viewing and reading pleasure.
1. Interiors beyond the primary palette
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2 House of Joy
If there was ever a book title for our times, then this is it. With a subtitle of Playful Homes and Cheerful Living, this book champions fun in interior design, with bold and bright homes from around the world to delight and inspire. While there’s a good dose of the unexpected, like a disco ball in the garden, there’s no mayhem in these spaces. Instead, they’re beautifully executed to tempt even the most colour shy. Gestalten, $105
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Some design books are beautiful to look at, and that’s it. This is not one of those books. A master of colour and pattern, UK designer Ahern offers a practical foundational guide to beautiful interiors, mixing form with function in her latest book, Masterclass. Find the inspiration you need to create a gorgeous home. HarperCollins, $65
4. Interiors Now!
Looking for a visual crash course in international design trends with longevity? This is the book for you. Featuring homes across the globe, from New York to Auckland via Avignon, the biggest dilemma for readers is settling on a style. Many of the projects are owned by designers and creatives, lending a dynamic edge to this tome, now in its 40th year. Taschen, $50
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For many Australians, the ocean holds an almost hypnotic appeal. Home by the Sea by Natalie Walton lets you imagine, for a little while at least, what it’s like living the dream in a beach shack in Byron Bay. The book tours 18 homes in and around the region and the hinterland owned by artists, designers and makers. With photography by Amelia Fullarton, it champions the good life. Hardie Grant, $60
6. The Layered Interior
Released last year, this is the third volume from award-winning interior designer Greg Natale. Different in format from his earlier books, the eight projects featured are Australian but with a slight Euro-centric focus. The writing is conversational, almost intimate, inviting the reader into the most luxurious spaces beautifully captured by photographer Anson Smart. This coffee table tome is perfect for dreamers and doers alike. Rizzoli, $110
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