PHOTO: SUPPLIED Chelsea Herbert has just been appointed by Colliers International New Zealand to lead its debt advisory service and help developers find funding here and overseas for property development.
The country’s big property developers and owners have raised the red flag that the main banks are starting to turn off funding for property development raising fears that few buildings and apartments will be built.
The new requirements from the Reserve Bank for trading banks to hold a lot more capital to help protect them from failing is being blamed for the squeeze on bank funding.
Property Council of New Zealand chief executive Leonie Freeman said a recent survey of industry professionals by the Royal Institute of Building Surveyors and the property council showed respondents reporting it was harder to get bank financing. The council represents owners with about $50 billion of property in New Zealand.
“Many respondents are beginning to warn that finance for new developments and business lending is increasingly becoming an issue, and some have seen the main trading banks start to turn the tap off in this sector,” she said.
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