The high-rise boom is over

From The AFR:

Macquarie Bank is planning to hit the brakes on lending to high rise and high density apartment dwellings in up to 120 postcodes around the nation amid growing fears about falling demand and oversupply. A confidential memo from the bank to brokers announces that from May 23 it will require a maximum loan to value ratio of 70 per cent, which means buyers will have to stump-up another 10 per cent deposit…

Leith van Onselen:

Macquarie’s latest actions, of course, also follows curbs by other major lenders aimed at mitigating exposure to high-rise developments, including:

  • tightening of lending criteria….
  • increased mortgage rates for investors; and
  • refusing to lend to overseas buyers…..

Every tightening of criteria by Australia’s mortgage lenders represents another nail in the high-rise apartment boom’s coffin.

Source: Macquarie joins high-rise lending crack-down – MacroBusiness

4 thoughts on “The high-rise boom is over

  1. michael beard says:

    This is not to be celebrated except by negativity gurus
    It is the one sector in our economy ( apart from disability services) which is moving
    Lots of jobs will go and how will they be replaced ?
    All around the world people are gravitating to large cities.
    Brisbane has a huge number of cranes and the city is coming alive with new restaurants and bars.
    Build it and they will come

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