Australian Housing Dynamics and Affordability
RESIDENTIAL DEVELOPMENT
OVERVIEW
PROFILE (SEP-19)
Total Residential Limits: $10.6b
Average qualifying pre-sales for Inner City Apartment
Development loans and corresponding LVRs were 101% and
52%, respectively as at Sep 19 (as compared to presales of
101% and LVR of 49% in Mar 19). These loans remain subject to
tight parameters around LVR, presale debt cover and quantum of
foreign purchaser presales. Overall appetite for Apartment
Development has remained unchanged over the last half. The
quality and experience of developers and builders remains a key
selection criterion.
Outside of Inner City locations, development exposures are
predominantly in the suburbs of the capital cities of the above
listed states.
Residential Development projects continue to be closely
monitored with level of oversight driven by progress of the
project vs. plan, industry trends and emerging risks.
Apartment Development
Other Development¹
Residential & Subdivision
Investment
$0.67b inner
city apartment
development
31%
20%
40%
Apartment Development
$4.20b
Melb
0.3
Bris
NSW and ACT
0.1
2.1
Syd
0.3
Sep-18
($b)
Sep-19
($b)
Total Exposure
10.28
10.60
$3.54b other
apartment
development
Apartments (>3 levels)
3.97
4.20
Inner City
0.56
0.70
0.9
VIC
0.4
0.2
QLD
Other
1.
Other Development primarily comprises Low Rise & Prestige Residential and Multi Project Development
9%
ANZ
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