Prepare for non-settlements as record number of new dwellings hit the market

With record numbers of attached dwelling completions expected over the next two years, the key data point to watch will be new apartment non-settlements. During reporting season, non-settlements on new apartments were generally either in line with, or below, long run averages. However, with Australia’s major financiers reluctant to lend to non-resident buyers, settlement risks are rising. With more than 200,000 attached dwelling completions expected across the next two years, it is a near certainty that defaults will rise from here. Mortgage stress presently isn’t that high in the capital cities, though a shift in the interest rate outlook could quickly change that. (VIEW LINK)