Property developers across the state have been forced to turn to non-bank lenders as the banks continue to squeeze out and place unreasonable requests on the development industry.

One of the largest privately owned property developers in New South Wales, the Monarch Investments Group (Monarch) said that the road blocks constantly put up by banks has made it impossible to develop new sites.

CEO Peter Icklow said, “Monarch has been developing lifestyle communities across New South Wales for over 56 years. I have never experienced the difficulties I am currently facing with banks requesting up to 100 per cent pre-sales for land developments and taking far too long in approving funding for new developments.”

“The average time for lending authorities to tick all of the boxes is now in excess of six months. In the past it took four to five weeks to achieve the same outcome.  Banks are constantly asking for more information.  New valuations and numerous credit reviews are now required over a six month or more time period.”

“Time is money. The banks are wasting an enormous amount of time and not allowing the building industry to move forward. Fortunately we have been able to find funding sources from non-bank lenders, which has proved to be the saving grace for the building industry,” he added.

“The time and delay constraints placed on us by the banks, has taken time away from us sourcing and building new land and housing, resulting in limiting employment opportunities and stagnating the housing market. In my opinion banks have a communal obligation to help fund housing. All they seem to do is keep taking. Their mindset needs to change.”

“It is little surprise that housing growth has come to a standstill in New South Wales. We are simply working in survival mode and preserving what we have built up over the past 56 years. Banks need to be more pro-active and co-operative and help rather than hinder new housing supply in this country. If loans can be approved faster, what we are losing in extra taxes (such as the GST and levies) can be made up as stock could be brought onto the market in a quicker time frame saving holding costs. Ultimately, loan delays are adding to the cost of producing new affordable housing,” he continued.