News Archive - 2016
Market News - July / August 2016
After a yet another cut in Cash Rate, now down to an amazing historical low of 1.50%, the property market remains reasonably bullish, however, an oversupply of apartments in some of the capital cities sees banks and mainstream construction lenders being very choosy about what they will, and won't fund.
At Viking Capital however its business as usual, despite some negative sentiment in the media recently about the apartment market and roughly a 20% increase in building costs across the board.
After a relatively quiet end of financial year period, Viking has been doing quite a bit of consulting and project assessment work with some of our previous clients several all of who have been finishing up and selling out of their most recent projects and who are now in the process of 'locking in' their next projects.
So far in August we have been engaged to fund the following projects;
an existing 46 x unit (3 x stage) project in Eagleby, QLD
a proposed 10 x townhouse project in Tweed Heads, NSW
an existing 29 x unit development in Cleveland, QLD
an existing 16 x unit development in Southport, QLD
Market News - September > December 2016
The last four month of the year kept us extremely busy and we looked at over 50 new deals during this time.
In general market terms however, constructing lending enquires did taper-off slightly, and in contrast we saw a number of the deals 'we were engaged to procure funding for' earlier in the year get bogged down with issues arising from a changing market, and tougher lending conditions. So we have had to work very closley with clients to keep these deals on track. For example, one of the major deals in the Viking funding pipe-line mid-year was Stage 2 of a 58 townhouse development at Wulkaraka. Due to number of factors this deal got stalled and previously approved funding lines were withdrawn, so in the end Viking had to go to the market on four occassions and finally we were able obtain a fourth consecutive construction loan approval, which in the end settled just two days before Xmas 2016.
Interestingly, in the latst quarter of 2016, we looked at a significant amount of deals involving overseas purchasers looking to finance 'off the plan' purchases and what was noteworthy about these deals was the majority of products being sold were being sold 15% > 20% above fair market value. Needless to say, we declined further involvement in financing these deals particuarly as some of the Borrowers were operating under PoAs.
Market News - April 2016
With the recent cut in Cash Rate, down to a historical low of 1.75%, we've seen a bit of a bounce in new finance appllications through the office, despite some negative media sentiment about the property market generally.
A summary of our recent loan approvals for the month of April, ($43.8M in total), are as follows:
$6M to assist with the construction of a Medium Density, Residential Development in Dandenong, VIC
$15.9M for the construction of a 'Mixed Use' Commercial / Residential Develpment on the Mornington Pennisula, VIC
$4.0435M for a medium sized Residential unit development in Kedron. QLD
$6.2M for a 'Mixed Use' Commercial / Residential Develpment in Ipswich, QLD
$4.2M for a medium sized Residential Unit Development in Sunnybank. QLD
$2.039M for a Small Townhouse Development in Annerley, QLD
$975K as a Bridging Loan for an upmarket Residential House in Castle Hill, NSW
$4.472M for a Small Townhouse Development in Tweed Heads, NSW