AMP Bank blacklists over 140 suburbs

Staff Reporter Thursday, 31 March 2016 Comments 0
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The leaking of a confidential report kept by AMP Bank has revealed the suburbs it deems to be most at risk, with a large supply of new-build apartments meaning tighter lending conditions are coming into play in cities across the country.

AMP is the latest lender to have been revealed as keeping a blacklist of risky suburbs where more stringent lending conditions will apply, according to Fairfax Media.

The list is composed of suburbs where there are high volumes of newly completed or soon to be completed apartment dwellings.

“We have identified certain high-density areas where we have put provisions in place to manage risk and oversupply,” a spokesperson for AMP Bank told Fairfax.

“We take a prudent approach to managing risk.”

According to Fairfax, borrowers from AMP in these suburbs will face tougher restrictions on the amount borrowed, restrictions on the number of apartments able to be purchased in a single development and a ban on using some developer incentives.

NSW suburbs on in the list include Annandale, Zetland, The Rocks, Dawes Point and Haymarket.

Victorian suburbs include South Yarra, South Melbourne, Docklands and Melbourne CBD.

West Australian suburbs include Perth CBD, Northbridge and Mandurah.

Queensland suburbs made up more than half of the list, with suburbs in Brisbane and Cairns included.

Brisbane suburbs included Brisbane CBD, Spring Hill and Wintergarden. Cairns suburbs included Aeroglen, Freshwater, Trinity Beach and Palm Cove.

[Related: AMP cuts rates on SMSF loans]

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