Development site values start to crack
It is only a matter of time when the property cycle peaks, plateaus and then falls and development site values start to crack.
Larry Schlesinger, Australian Financial Review writes:
“Metropolitan development sites values, which have surged in recent years on a wave of Chinese money, are showing the first signs of correcting after developer Nicholas Smedley secured two sites at discounts of 30 per cent or more after vendors rejected his original off-market offers, thinking they would get more through a public campaign.
Chinese buyers have quit the market in droves, and off-the-plan sales rates have slowed drastically in Sydney and Melbourne meaning the building boom is starting to wane.”
For the full article go to Australian Financial Review
Development Finance Availability
With property development site values falling due to market forces and Banks tightening lending criteria, private property loans are the flavour now and into 2018.
Prudential Finance has private development loans available for experienced property developers, loans from $5M to $1B.
Call 1300 550 669 to discuss your development finance requirements.
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