More than 140 suburbs have been blacklisted for apartment loans by a non-major lender following fears of oversupply, off-the-plan sales and falling prices. According to leaked documents obtained by the Australian Financial Review, AMP explains its ‘black list’ is a “prudent” response to managing risks of oversupply, which could push down prices, rents and lead to defaults.
The ‘black list’ is primarily concerned with apartment developments consisting of more than 10 dwellings built near capital cities and inner-suburban areas, where there is a high volume of new or soon-to-be-completed developments.
Even suburbs more than 10-kilometres from Sydney’s CBD, such as Homebush and Arncliffe, have recently been added to AMP’s list as more and more apartments are beginning to be constructed in those areas.
According to the leaked documents obtained by the AFR, AMP borrowers will face tougher terms on the amount borrowed, the number of apartments purchased in a single…
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