An Australian non-bank lender says over a third of its loans are to Chinese borrowers for property development projects.
While recent reports suggest that Chinese demand for Australian property may be cooling, Chinese property investors now make up 37 per cent of lending provided by non-bank finance group Chifley Securities.
The proportion of loans to Chinese borrowers on Chifley’s applications, worth over $400 million over the last year, has risen from 25 per cent over the last six months, notwithstanding the Chinese government has created more obstacles in moving capital out of the country, the group said in a statement.
Over the last year, Chifley Securities has arranged $150 million worth of deals to Chinese borrowers, who are mostly financing development projects ranging from residential developments to high-end commercial properties.
Chifley Securities’ director Joe Morello said the loans to the Chinese borrowers have allowed them to finance projects while they undertake the sometimes lengthy process of freeing up offshore funds or undertake projects that do not fit the major banks’ now very tight lending criteria.
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