No Comments

Australian Suburbs Blacklist 2016

Bangaroo, Sydney. Credit: Taken from http://bit.ly/1Ri9DWf

Summary:

·       AMP Bank has blacklisted 140 apartment suburbs across Australia due to oversupply and other issues

·       Queensland and Western Australia lead with most blacklisted suburbs

·       In Australian capital cities Sydney CBD and Melbourne CBD tops the blacklist for high rise builds

AMP BANK has blacklisted apartments in more than 140 suburbs due to growing concerns of oversupply, off-the-plan sales and falling prices. The list was leaked and published in the Australian Financial Review yesterday.

The concern of oversupply could push down prices, rents and lead to defaults. AMP is not the only big lender circulating black lists, where buyers will face tougher terms on the amount borrowed, number of apartments purchased in a single development and a ban on using some incentives offered by developers, such as rental guarantees. Last year, NAB had blacklisted more than 80 suburbs across Down Under where they capped LTVs in the area.

Currently, Queensland and Western Australia leads AMP’s blacklist, while among capital cities, Sydney tops both AMP and NAB’s ‘high risk’ list, as building of apartments has boomed due to demand from investors and first-time buyers. Melbourne is not spared either, namely the CBD, Docklands and Southbank.

What’s worth flagging is that Brisbane CBD, Melbourne CBD, Perth CBD, and Sydney CBD have appeared on both NAB’s blacklist in 2015 and AMP’s blacklist this year.

“We have been warning our clients that the CBD is not the place to invest in as valuations have been unfavourable. We have refrained from marketing Sydney property as prices have gone too high and there is a great oversupply there. AMP’s blacklist just confirms our predictions,” says CSI Prop spokesperson Virata Thaivasigamony.

“Our objective is to make a difference in the lives of our clients, to help them achieve their investment goals, which is why our projects are concentrated in locations that have sound growth potential. We pride ourselves on our research, which is the bedrock of the investment projects that we offer,” he adds.

An estimated 45,000 apartments are due for completion and settlement over the next nine months to Christmas in Melbourne, Sydney and Brisbane, an increase of nearly 25 per cent compared to last year, with another 53,000 coming to the market in the same postcodes next year, according to planning consultancy MacroPlan Dimasi.

Below: AMP’s Apartment Suburb Blacklist 2016

Credit: Australia Financial Review http://www.afr.com/real-estate/amp-blacklists-more-than-140-suburbs-for-apartment-lending-20160322-gno3em

To read more about AMP’s Apartment Blacklisted Suburbs 2016, click http://bit.ly/1RAp8Li

To compare with NAB’s credit risk list in 2015, read: http://bit.ly/1MDqT2P

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260