Click on our Secret Library of Evidence ------>

    BANKILEAKS Secret Library

Loan Application Forms (LAF's)  

    Bank Emails to Brokers  

    Then Click on 'VIEW NOTEBOOK'

Join us on facebook

facebook3           facebook2 


What BFCSA Does...

BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.


Articles View Hits

Whistleblowers' Corner!

To all mortgage brokers, BDMs and loan approval officers! 
Pls Call Denise: 0401 642 344 

"Confidentiality is assured."

Cartoon Corner

Lighten your load today and "Laugh all the way to the bank!"

Denise Brailey

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form

BFCSA: Brisbane has 10,000 more apartments in pipeline than it should: RiskWise

  • Font size: Larger Smaller
  • Hits: 277
  • Print

Brisbane has 10,000 more apartments in pipeline than it should: RiskWise

Australian Financial Review Jul 11 2018 11:45 PM

Matthew Cranston


Brisbane's inner-city apartment market has about 10,000 more homes in the pipeline than it should, says property research outfit RiskWise, and the city is expected to face more defaults on settlement.

RiskWise chief executive Doron Peleg said developers and lenders were "failing to properly assess the risks" when it came to supply and demand, and the inner-city Brisbane apartment market was a prime example.

"What we are seeing now is the realisation of the risk that should have been identified at least a couple of years ago. Defaults have been rising and will continue to do so," he said.

RiskWise argues that, as early as June 2016 in the Statistical Area Level 4 of Brisbane inner city, price growth was -1.8 per cent with 17,417 units in the pipeline – an addition of 24.5 per cent to the stock.

In 2017 price growth was again negative at -2.2 per cent, but pipeline supply crept up to 19,194 units, accounting for 27 per cent of existing supply.

This year RiskWise has price growth at -2 per cent, with the pipeline at 14,813 units, accounting for 20 per cent of the supply.

RiskWise said a healthy level for any market should be no more than 5 per cent of existing supply.

"The issue of oversupply is not a new problem and has been there for a few years, and the continuous weakness of the unit market in inner-city Brisbane should have raised red flags for developers and lenders," Mr Peleg said.

"Overall, it seems they were too optimistic about the projected market value, and it is highly likely that the price they paid for the land was also too high."

Banks are aware of the problem. Suncorp announced a crackdown on high-rise apartment purchases, flagging Inner Brisbane City, including Brisbane City, New Farm, Teneriffe, Fortitude Valley and many others, on a blacklist last year.

Bank of Queensland has also recognised "potential for an oversupply in the Brisbane market and future pressure on unit prices and reduced rental yields", while major developer Lendlease says Brisbane is the most challenging inner-city apartment market in the country.

Mr Peleg said it must be remembered the value of off-the-plan property could decrease between the contract date and settlement, resulting in capital loss, as equity in the home could be reduced, and this was well known in inner-city Brisbane.

Last modified on
Rate this blog entry: