The 87 blacklist suburbs when it comes to Citi apartment lending

The 87 blacklist suburbs when it comes to Citi apartment lending
The 87 blacklist suburbs when it comes to Citi apartment lending

Apartment buyers in more than 87 suburbs across Australia will find it harder to get a Citi mortgage given tightened lending criteria.

In a note sent to mortgage brokers at the end of July, Citi pinpointed 34 Sydney postcodes, 27 in Melbourne and 12 in Queensland where borrowers would have higher deposit requirements.

Citi has imposed new lending conditions fearing high density "blackspots" face a surge in approvals.

Buyers in nearly 90 postcodes will require deposits of up to 35 per cent.

Investors also face tougher terms for cash-out loans, which enable a borrower to draw-down a property's equity, according to an update sent to the bank's network of mortgage brokers, obtained by The Australian Financial Review.

The black list is similar to previous lists of high density apartment inner city suburbs, but expands particularly in the western suburbs of Sydney and south-east suburbs of Melbourne.

The global bank only has a small mortgage book in Australia but does have a high profile with offshore Asian investors.

Citi's analysts are warning the 20 per cent rise in private apartment approvals during June will increase the threat of over-supply as construction is completed.

"The surge in approvals was heavily concentrated in Sydney, which is surprising given the tightening of lending standards and rise in lending to investors and interest-only occupiers," according to the bank's analysis.

NSW

Suburb

Postcode

Sydney

2000

Ultimo

2007

Alexandria

2015

Waterloo

2017

Rosebery

2018

Botany

2019

Mascot

2020

Bondi Junction

2022

Stanmore

2048

Greenwich

2065

Longueville

2066

Chatswood

2067

Ryde

2112

North Ryde

2113

West Ryde

2114

Epping

2121

Sydney Olympic Park

2127

Strathfield

2135

Enfield

2136

Concord

2137

Liberty Grove

2138

Homebush

2140

Granville

2142

Parramatta

2150

North Rocks

2151

Castle Hill

2154

Kellyville

2155

Canterbury

2193

Campsie

2194

Lakemba

2195

Marrickville

2204

Arncliffe

2205

Rockdale

2216

Hurstville

2220

ACT

Suburb

Postcode

Canberra

2600

City, ACT

2601

Narrabundah

2604

Braddon

2612

University of Canberra

2617

WA

Suburb

Postcode

Perth

6000

East Perth

6004

west Perth

6005

Subiaco

6008

Claremont

6010

Maylands

6051

Victoria Park

6100

Perth Airport

6105

VIC

Suburb

Postcode

Melbourne

3000

East Melbourne

3002

West Melbourne

3003

St Kilda Road

3004

Southbank

3006

Docklands

3008

North Melbourne

3051

Melbourne University

3052

Carlton

3053

Princes Hill

3054

Sumner

3057

Collingwood

3066

Abbotsford

3067

Doncaster

3108

Doncaster East

3109

Richmond

3121

Hawthorn

3122

Auburn

3123

Box Hill

3128

South Yarra

3141

Darling

3145

Dandenong

3175

St Kilda

3182

Balaclava

3183

South Melbourne

3205

Albert Park

3206

Port Melbourne

3207

QLD

Suburb

Postcode

Brisbane City

4000

New Farm

4005

Fortitude Valley

4006

Hamilton

4007

Albion

4010

Chermside

4032

South Brisbane

4101

Buranda

4102

Greenslopes

4120

Coorparoo

4151

East Brisbane

4169

Seven Hills

4170

SA

Suburb

Postcode

Adelaide

5000

Citi is among the lenders that has increased funding costs for interest-only property borrowers.

Last year the NAB expanded its list of blacklisted suburbs

Earlier this year about 57% of Brisbane cranes were deemed located in areas that had been blacklisted.

Tags: 
Mortgages Apartment Market

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