Non-banks to snap up share of $300b property as big four pullback

PHOTO: Non – Bank & Bank Lenders

Fast-growing non-bank financiers expect to grab a 10 per cent share of Australia’s $300 billion commercial property lending sector as mainstream banks continue to limit their exposure to developers.

An increasing number of development projects and property investments are being financed by non-bank lenders as developers and investors struggle to get funding through traditional banks.

The shift in development financing, driven by banks crimping their loan books in the face of regulatory pressures, has been accelerated by the nationwide residential property slump that is testing the construction industry’s limits.

Non-bank lender Chifley Securities said it has seen a 16 per cent rise this financial year in property developers directly seeking urgent financial help as pre-sales and sales in their projects slow down.

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