Citi clamps down on lending in 'blackspot' suburbs
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Aug 9, 2017
Citi clamps down on lending in 'blackspot' suburbs
Citi will require a 35 per cent deposit for loans on all apartments built less than two years ago, and for any apartment on a list of 90 postcodes Australia-wide.
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Citi is clamping down on lending in 90 postcodes around Australia, amid concerns that strong building approvals could lead to an oversupply of homes.
Loans for properties in the suburbs, which are mainly in Sydney and Melbourne, will require a deposit of 35 per cent.
The new guidelines, which have been distributed to mortgage brokers and reported in the Australian Financial Review, apply to all apartments built less than two years ago, and to any apartments on the list.
Citi's report Property outlook for 2017 - Will the boom continue? states:
"If you are considering a new property investment in Melbourne or Brisbane, be wary of inner city off the plan apartment developments.
Citi Economist Paul Brennan, who co-authored the report, said, "We've never seen anything like the current levels of apartment construction before, and it could result in short-term oversupply. This will weigh on any potential for further capital gains - there could even be some downward pressure on prices, and also on rental yields."
Citi's 'blackspot' suburbs
New South Wales
- Sydney 2000
- Ultimo 2007
- Alexandria 2015
- Waterloo 2017
- Rosebery 2018
- Botany 2019
- Mascot 2020
- Bondi Junction 2022
- Stanmore 2048
- Greenwich 2065
- Longueville 2066
- Chatswood 2067
- Ryde 2112
- North Ryde 2113
- West Ryde 2114
- Epping 2121
- Sydney Olympic Park 2127
- Strathfield 2135
- Enfield 2136
- Concord 2137
- Liberty Grove 2138
- Homebush 2140
- Granville 2142
- Parramatta 2150
- North Rocks 2151
- Castle Hill 2154
- Kellyville 2155
- Canterbury 2193
- Campsie 2194
- Lakemba 2195
- Marrickville 2202
- Arncliffe 2205
- Rockdale 2216
- Hurstville 2220
ACT
- Canberra 2600
- City, ACT 2601
- Narrrabundah 2604
- Braddon 2612
- University of Canberra 2617
Western Australia
- Perth 6000
- East Perth 6004
- West Perth 6005
- Subiaco 6008
- Claremont 6010
- Maylands 6051
- Victoria Park 6100
- Perth Airport 6105
Victoria
- Melbourne 3000
- East Melbourne 3002
- West Melbourne 3003
- St Kilda Road 3004
- Southbank 3006
- Docklands 3008
- North Melbourne 3051
- Melbourne University
- Carlton 3053
- Princess Hill 3054
- Sumner 3057
- Collingwood 3066
- Abbotsford 3067
- Doncaster 3108
- Doncaster East 3109
- Richmond 3121
- Hawthorn 3122
- Auburn 3123
- Box Hill 3128
- South Yarra
- Darling
- Dandenong 3175
- St Kilda 3182
- Balaclava 3183
- South Melbourne 3205
- Albert Park 3206
- Port Melbourne 3207
Queensland
- Brisbane City 4000
- New Farm 4005
- Fortitude Valley 4006
- Hamilton 4007
- Albion 4010
- Chermside 4032
- South Brisbane 4101
- Buranda 4102
- Greenslopes 4120
- Coorparoo 4151
- East Brisbane 4169
- Seven Hills 4170
South Australia
- Adelaide 5000
ING Direct has also responded to heightened risks in the Australian property market. The global bank has reduced the minimum sizes for apartments in will finance by 20 per cent to 40 square metres.
Read Citi's 'Property outlook for 2017 - Will the boom continue?' report in full.
Read more about lending in the Australian market:
Other lenders fill the gap as big four clamp down on foreign borrowers
New rules mean lenders see 'positive data' when assessing loans
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