Australian property funding crisis for off-the-plan apartments purchasers – Settlement Risk. Australian bank lending has been frozen, Chinese clients face foreclosure.
Australia foreign investors default on apartments with restrictions on lending, plummeting valuations and a whopping 231,129 apartment oversupply.
The Australian apartment crisis is showing abyssal cracks as overseas investors default on off the plan apartment purchases.
Since the recent lending restrictions by Australia’s big four banks and devastating lower valuations, many overseas investors are opting to simply walk away from their apartment purchase. What is important to note is, that Australia property developers are now under duress as settlement risk posses a significant financial hazard with large amounts of apartments failing to settle over the next 24 months. A Settlement Risk Report issued by CoreLogic defines the number of units due to settle over the next 2 years expected to be a whopping 231,129 apartments.
Read the full article here: https://mortgageeproperty.com/australia-foreign-investors-default-on-apartments.html
Australian property funding crisis. Australian bank lending has been frozen, Chinese clients face foreclosure. There is an Australian property funding crisis gathering momentum for Chinese off-the-plan apartment purchasers, both domestic and overseas.
Published in the Australian Financial Review today, in late 2016 and early 2017 Chinese clients may face foreclosure as a direct result of the foreign lending freeze by Australian banks. Over 60 Billion dollars of apartments are reshaping Australian skylines. There are 116,650 new apartments under construction, off-the-plan apartments that have been heavily sold (obviously predominantly) to overseas Chinese investors. Financiers claim Chinese clients funding from Australian banks has been frozen and they face a predictable foreclosure.