subscribe to our newsletter

Non-bank lists ‘no-go zones’ for construction loans

Chifley Securities has revealed its list of “high-risk” suburbs and “no-go zones” for financing residential developments. 

Non-bank lending group Chifley Securities has released its list of suburbs in Sydney and Melbourne that it considers “high-risk” or “no-go zones” for financing new residential developments. 

“We have created the no-go zones on the basis that many outer-lying suburbs of Sydney and Melbourne pose serious risks for both developers and buyers due to an explosion of development activity,” Chifley Securities principal Dominic Lambrinos said. 

The greenfield suburbs in Sydney that made the list include: Schofields and Box Hill regions, Leppington, Badgerys Creek and Kemps Creek, Kurrajong Heights, Katoomba and Orchard Hills.

In Melbourne, greenfield development sites that are considered “off-limits” by the non-bank lender include: Plumpton to the Bacchus March corridor, Truganina to the west, Officer to the East and Cranbourne to the South.


“These areas are seeing explosive growth in the number of residential dwellings, yet are not yet supported by the necessary infrastructure required to support vibrant communities,” Mr Lambrinos said.  

“While there might be a new railway station, road and supermarket in a suburb, this infrastructure does not fill the requirement for a sustainable and healthy and profitable development for both developers and residents.”

However, the list is not fixed, according to the Chifley Securities principal, who said that it will be amended once the market and amenities in the listed suburbs have “caught up” with the developments “saturating the suburbs”. 

Chifley Securities has claimed to have lent developers about $2 billion in the 2018-19 financial year, with Mr Lambrinos observing that there has been a boost in developers turning to non-bank lenders recently. 

The non-bank financing group in May reported a 16 per cent rise in property developers seeking urgent financial assistance as their project sales and pre-sales had waned, partly due to “tighter lending controls”. 


“We continue to see more residential developers coming to Chifley and our competitors as their pre-sales dry up, amid the realisation that many have paid comparatively high prices for their land,” Mr Lambrinos said.

“While credit guidelines have been loosened by the Australian Prudential Regulation Authority, financing by the major lenders continues to be tight, and non-bank lenders are taking up the slack.”

[Related: Property developers increasingly seeking ‘urgent’ assistance]

Non-bank lists ‘no-go zones’ for construction loans
Apartment construction

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Tickets are on sale now. Work smarter, not harder, this year.


If you have any news, ideas or enquiries for Mortgage Business - please contact This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The RBA has announced its August rate decision as ongoing lockdowns dampen speculation about imminent rate rises. ...

The CEO of a customer-owned lender has warned that mutual banks that do not have scale and financial strength will be ‘unsustainable’ i...

Two more major banks have signalled both permanent and partial closures in their branch networks. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.