Suncorp's lending restrictions on blacklisted 100 Brisbane suburbs cruelling apartment sales

Suncorp's lending restrictions on blacklisted 100 Brisbane suburbs cruelling apartment sales
Suncorp's lending restrictions on blacklisted 100 Brisbane suburbs cruelling apartment sales

Apartment purchases in more than 100 Brisbane suburbs, circulated on a confidential list, will face new lending restrictions from next Monday from the home town lender, Suncorp.

The list covers 39 Brisbane postcodes.

Under Suncorp's new rules, it will no longer accept investment loan applications for apartments where the buyer does not have a minimum deposit of 20 percent or more.

The exceptions are existing home loan applications and those received before Friday.

"Our settings have been adjusted for postcodes based on recent weakness in the investment unit market in Brisbane, with evidence of a reduction in prices," a Suncorp Bank spokesman said.

4000 Inner Brisbane City

4005 New Farm; Tenneriffe

4006 Fortitude Valley; Bowen Hills; Newstead; Herston

4007 Ascot; Hamilton

4009 Eagle Farm

4010 Albion

4011 Clayfield; Hendra

4012 NUNDAH; Toombul, Wavell Heights

4013 Northgate

4029 Royal Brisbane Hospital

4030 Kalinga; LUTWYCHE; Windsor; Wooloowin

4031 Gordon Park; Kedron

4032 Chermside

4051 Alderly; Enoggera; Gaythorne; Grange; Newmarket; WILSTON

4053 Brookside Everton Park; Everton Hills, McDowall; Mitchelton; Stafford

4054 Arana Hills, Keperra

4059 KELVIN GROVE; Red Hill

4060 Ashgrove

4061 The Gap

4064 Paddington; Milton

4065 Bardon

4066 Toowong; Auchenflower; Mount CootTha

4067 St Lucia

4068 Chelmer; Indooroopilly; Taringa 

4072 University of Qld

4075 Graceville; Corinda; Sherwood; Oxley

4101 HIGHGATE HILL; South Brisbane; West End

4102 DUTTON PARK; Woolloongabba

4103 ANNERLEY; Fairfield; Fairfield Gardens

4104 Yeronga

4105 Moorooka; Tennyson; Yeerongpilly

4120 Greenslopes; Stones Corner

4121 Holland Park; Wellers Hill; Tarragindi

4122 Mansfield; Mount Gravatt; Wishart

4152 Camp Hill; Carina; Carindale

4169 East Brisbane, Kangaroo Point

4170 CANNON HILL; Morningside; Norman Park; Seven Hills

4171 Balmoral; Bulimba; Hawthorne

4172 Murarrie 

 

The Australian Financial Review who obtained the list reports developers, such as Consolidated Properties, claim Brisbane has been cruelled by restrictions on financing set up to ease speculative apartment buying in Melbourne and Sydney.

Suncorp is a Brisbane based top 20 ASX-listed company with $97 billion in assets which employs 13,400 people and serves close to nine million customers across Australia and New Zealand. 

It commenced business in 1916 as the State Accident Insurance Office. 

The RBA has repeatedly warned buyers of the likely oversupply in Brisbane apartments.

Last week the bank noted to date, the adjustment in the Brisbane apartment market has not resulted in significant stress.

"Settlement failures appear to have remained in line with historical norms, although the peak of new supply is yet to come.

"Some developers, however, report that tighter financing conditions are contributing to delays in the settlement of off-the-plan purchases, as valuations below the purchase price reduce the amount banks will lend.

"In liaison, industry participants and banks express confidence that the Brisbane market will continue to absorb the new supply despite tighter financing conditions for buyers.

"Continued weakness in rents, and so rental income, remains a debt-servicing risk for investors," the RBA said. 

 

Tags: 
Oversupply Brisbane Apartments

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