Lenders may declare no-go zones as apartment numbers soar... Sales figures over February a positive for Perth...
Lenders may declare no-go zones as apartment numbers soar
The boom in apartments seen in areas such as inner-city Sydney and Melbourne could result in lenders cutting off finance to individual suburbs, streets or developments according to a Sydney based buyer’s agent.
According to the Sydney and Melbourne’s Housing Affordability Crisis: No End in Sight report released by The Australian Population Research Institute (TRAPI) earlier this week, both Sydney and Melbourne will see apartment completions soar in 2016 and 2017 compared to recent years.
Report authors Bob Birrell and David McCloskey claim the boom in apartment numbers has been driven by a mix of overseas buyers and local investors looking to buy off the plan
The report claims Sydney will see more than 22,000 apartments come online in both years, while just over 21,000 new apartments are predicted each year for Melbourne.
"Lenders who might be overexposed in a particular suburb or building will then cease to finance them completely. It won’t come down to lending policies, it will come down to something like one lender has 30 or 40 units in one building that they’re lending to and they’ll say no more and won’t take the risk on," said Todd Hunter, head of buyer’s agency wHeregroup.
“We’ll see more and more of that. Lenders have the right to do that and they do exercise that right. It can go down to suburb, street or development. The data they have on that now is very good and they can work that out very well."
Sales figures over February a positive for Perth
February was a busy month for real estate agents in Perth, with analysis from the Real Estate Institute of Western Australia (REIWA) revealing a jump in the number of homes sold in the city.
While there may be some seasonality to the February figures as market activity picks up after the Christmas and New Year’s slump passes, REIWA president Hayden Groves said the figures are still a positive for Perth.
“[Our] data shows sales activity in Perth lifted 16 per cent over the month and five per cent when compared to November 2015,” Groves said.
“We’ve also seen that weekly sales over the last three weeks are higher than they were at the same time last year. While it’s too early to call this a trend it’s a good indicator that mobility in the market is beginning to improve,” he said.
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The boom in apartments seen in areas such as inner-city Sydney and Melbourne could result in lenders cutting off finance to individual suburbs, streets or developments according to a Sydney based buyer’s agent.
According to the Sydney and Melbourne’s Housing Affordability Crisis: No End in Sight report released by The Australian Population Research Institute (TRAPI) earlier this week, both Sydney and Melbourne will see apartment completions soar in 2016 and 2017 compared to recent years.
Report authors Bob Birrell and David McCloskey claim the boom in apartment numbers has been driven by a mix of overseas buyers and local investors looking to buy off the plan
The report claims Sydney will see more than 22,000 apartments come online in both years, while just over 21,000 new apartments are predicted each year for Melbourne.
"Lenders who might be overexposed in a particular suburb or building will then cease to finance them completely. It won’t come down to lending policies, it will come down to something like one lender has 30 or 40 units in one building that they’re lending to and they’ll say no more and won’t take the risk on," said Todd Hunter, head of buyer’s agency wHeregroup.
“We’ll see more and more of that. Lenders have the right to do that and they do exercise that right. It can go down to suburb, street or development. The data they have on that now is very good and they can work that out very well."
Sales figures over February a positive for Perth
February was a busy month for real estate agents in Perth, with analysis from the Real Estate Institute of Western Australia (REIWA) revealing a jump in the number of homes sold in the city.
While there may be some seasonality to the February figures as market activity picks up after the Christmas and New Year’s slump passes, REIWA president Hayden Groves said the figures are still a positive for Perth.
“[Our] data shows sales activity in Perth lifted 16 per cent over the month and five per cent when compared to November 2015,” Groves said.
“We’ve also seen that weekly sales over the last three weeks are higher than they were at the same time last year. While it’s too early to call this a trend it’s a good indicator that mobility in the market is beginning to improve,” he said.
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