In the past month I have seen a decline in the number of good quality loan applications across my desk, and a substantial increase in traffic of development sites which are now for sale. Rubbish applications remain at frustratingly high levels.
Counter-cyclical builder/developers have also started to contact me to catch up. These are the developers who did well post GFC by making their profit from the purchase of the site and reduced building prices in times of reduced competition in the building industry.
I find this all to be very encouraging and supportive of my view that finance restrictions will limit there being a large scale oversupply of apartments in Brisbane. Inevitably there will be some localised areas of oversupply, but these are areas and product types GPS avoids as part of our extensive due diligence process.
There are quite a few loans in the GPS pipeline. As always we will only settle them once they have satisfied our due diligence process.