Banks Ease Away From Apartment Lending | Kanebridge News
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Banks Ease Away From Apartment Lending

The move away from apartment development has left a gap for non-bank lenders.

By Kanebridge News
Thu, Jul 1, 2021 2:07pmGrey Clock < 1 min

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.



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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.

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3. Abigail Ahern Masterclass

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