Wolli Creek and Zetland apartment projects on "bank's blacklist"

Wolli Creek and Zetland apartment projects on "bank's blacklist"
Wolli Creek and Zetland apartment projects on "bank's blacklist"

An undisclosed major bank has a blacklist of 6700 apartment projects across Australia.

The projects are where buyers are either refused loans or are offered reduced loan to value ratios (LVR).

The list has been obtained by The Australian Financial Review from the mortgage broker, Home Loan Experts. The newspaper article only pinpointed a handful of effected projects.

It reveals projects where buyers have either been denied loans or offered less funding are 19 Larkin Street in Camperdown in inner-city Sydney, Finbar's Aire apartments in West Perth and Meriton's developments on Main Beach on the Gold Coast and 1 Janoa Place in Chiswick, inner west Sydney.

Sydney-based Home Loan Experts noted "blacklisted" projects vary across the banks

Areas which are consistently "blacklisted" however include Wolli Creek and Zetland (above) in inner south Sydney and the Brisbane CBD given a potential oversupply of new units or the bank reaching maximum exposure of loans on a project, managing director Otto Dargan said. 

Earlier this year RiskWise declare Zetland as the riskiest off the plan suburb in 2018.

No Lending (Exposure Reached)

19 Larkin Street, Camperdown, NSW;

58 Cairds Avenue, Bankstown, NSW;

23 Mcintyre Street, Gordon, NSW;

10 Rosamond Road, Footscray, VIC.

Restricted Lending

29 Woodroffe Avenue, Main Beach, QLD, Maximum LVR: 70%;

1 Janoa Place, Chiswick, NSW, Maximum LVR: 80%;

Cromwell Road, South Yarra, VIC, LVR: 80%;

275-277 The Esplanade, Cairns North, QLD, LVR: 70%;

36 Griffith Street, New Farm, QLD, LVR: 90%;

659 Murray Street, West Perth, QLD, LVR: 80%

A dense project is usually one which has more than 30 apartments, Dargan said.

Serviced apartments or converted hotels are always considered as high-risk lending.

Assisting borrowers who have been rejected by banks is now a constant challenge, Dargan added.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

Tags: 
Oversupply Zetland

Comments

Be the first one to comment on this article
What would you like to say about this project?