I have been keeping a low profile as there has been too much uncertainty and negativity in the residential development market.
The Hayne Royal Commission has now concluded. Political and regulatory pressure now is for the banks to lend to purchasers. The banks are saying that they will increase lending to purchasers, but it will not occur overnight. Property prices in South East Queensland have not tanked.
At GPS, loans continue to be repaid from sales achieved at or near valuation and we have monies to lend. It has been business as usual for us.
Judging by the quantity and quality of loan applications coming across my desk, the banks are not re-entering the residential development funding market. There are no signs that they will be back any time soon.
It demonstrates to me that borrowers value the quality of service, reliability and experience provided by long established lenders like GPS.
Townhouse developments, owner occupied units and projects on the Gold and Sunshine Coasts continue to perform. Investor unit product in the inner and middle rings of Brisbane are struggling to achieve sales volumes and may require some discounting.