Property Development Market Update

I recently spoke with the CEO of the Property Developer that I am in Joint Venture with.  I enjoy speaking with him as it gives me a real insight into the property market from an insider who is on the ground rather than relying on media which is feast of opinions.

Here are some takeways from my conversation:

1) Lending remains very tight.  Banks are playing hardball on any finance deals, residential or commercial.  Deals are taking much longer than previously and the amount of documentation is extensive.  Message here is make sure you are watertight on your application!!

2) Banks are typically using 10% less than market value for refinancing deals and valuations.  Again a note worth bearing in mind, especially if you are looking at an off the plan purchase or looking to refinance

In terms of the property development market, obviously this is making things very tricky as the property developers are getting squeezed at both ends.  Delays are bad news in property development due to the holding costs involved. so tread carefully if you are starting your own development or looking at an off the plan property.

Stayed tuned for more property development market updates!