Mandurah has appeared on a major investment bank’s list of risky suburbs, a move which has the potential to jeopardise the local real estate investment market.
Mortgage brokers were told Macquarie Bank intended to tighten their lending policies for real estate purchases in Mandurah, requiring borrowers to stump up 30 per cent of the cost of apartments.
Australian banks have recently restricted lending to real estate investors and overseas buyers because of concerns new government regulations would force banks to hold more capital against these investments.
Inner-city postcodes in Perth, including West Perth, Highgate, Northbridge and Kings Park, and other capital cities were also on the Macquarie Bank risky list.
However, REIWA president Hayden Groves said Mandurah owners and investors shouldn’t worry any time soon about the value of their properties.
He said Macquarie Bank was only a small part of the mortgage market.
“It’s Macquarie Bank only, and back when the GFC came, Macquarie Bank stopped all domestic lending altogether; they were no longer offering any domestic mortgages,” Mr Groves said.
“All they’ve done is target all the major areas, but the apartments in Mandurah are now targeted to a new sector of the market; the new developments are affordable one-bedroom, two-bedroom properties and are the future of the market.”
Macquarie Bank did not comment on the changes.