Bank blacklists 100 Brisbane suburbs


Another bank has come out with a Black List of Suburbs where they are restricting lending

Nervous lenders have growing concerns about over-supply of high rise apartment at a time of falling prices and restrictions on foreign buyers. Brisbane City CBD, Queensland, Australia

Most of the big banks have announced tougher measures, with lower LVR’s and requiring evidence of rental cash flows and implementing tougher valuation criteria.

Adelaide Bank has introduced the requirements that apartments have their own bathrooms, kitchens, laundries and windows in key rooms, such as bedrooms and lounge rooms.

Of course, this makes sense – after all these are basic requirements in Australia – aren’t they? 

Further – minimum sizes for two bedroom apartments have been doubled to 60 square metres and timeframes for off-the-plan valuations have been reduced from six to three months to “better the risk” and “align acceptance of applications and valuers’ professional indemnity cover”.

Suncorp Bank, has provided brokers with a  list of 39 Brisbane postcodes covering more than 100 city and metropolitan suburbs where the new lending restrictions will apply from next Monday.

In general these suburbs had similar characteristics – a large number of new high-density developments.

Under Suncorp’s new lending criteria, it will no longer accept investment loan applications for apartments that do not have a minimum deposit of at least 20 per cent.

Blacklisted Brisbane Suburbs

Source: Australian Financial Review


The problem is buyers will have to make up the difference between the purchase price and the final valuation and at the same time find a bigger deposit if the bank will now only lend 70% or 80%  queensland brisbane city water sky QLD map state capital australiaof its valuation (not the contract price) when many off the plan buyers were hoping to get either an 85% or 90% LVR when they initially committed to the purchase while others were hoping to make a quick profit expecting to see their properties worth much more than their contract price – not less as seems to be happening more and more.

Unfortunately some purchasers will not be able to settle on their proeprties and risk not only losing their deposit, but being sued by the developers for any losses made by the developer when they resell the property at  a lower price.

You may also want to read:

12 Brisbane Suburbs the banks don’t like

Even more problems for investors in Blacklisted postcodes


Subscribe & don’t miss a single episode of Michael Yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to Michael Yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.


Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.


is a Property Strategist with an accounting background and over 30 years’ Commercial Banking experience. She is a passionate property investor who enjoys helping her clients create wealth through property investment using Metropole’s strategic approach.
Welcome to Metropole Melbourne

'Bank blacklists 100 Brisbane suburbs' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.


Copyright © Michael Yardney’s Property Investment Update Important Information
Content Marketing by GridConcepts