Construction finance remains tight
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Andrea Cornish
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1/09/2010 6:00:00 AM
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A continued tightening of credit will make it tough for builders over the next 18 months, according to a new survey.
Property and construction consultants Davis Langdon polled decision makers in senior development and finance positions across Australia and New Zealand to determine barriers to construction financing and possible solutions, according to a report in the Sydney Morning Herald.
Respondents included builders seeking finance, brokers, consultants and lending representatives.
According to researcher Michael Skelton, developers viewed the loan-to-equity ratios as very conservative and unworkable, particularly when combined with shrinking valuations and a lack of second-tier finance.
“The finance sector primarily cited a turnabout only when global markets become less skittish.”
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