Avamore Capital

Completion times for development finance increases to 8.8 weeks

The average completion time for development finance increased to 8.8 weeks in Q2 2019 from 7.4 weeks in the quarter before, according to Avamore Capital’s Q2 market bulletin.

Avamore’s report features a combination of data points and opinion-based questions for brokers across the development and unregulated bridging sectors and is designed to understand the current market sentiment.

Other highlights from Avamore’s market bulletin included:

  • figures from the unregulated bridging and development finance dashboards indicated that the market was continuing to take a careful approach to transactions
  • market uncertainty had caused a slowdown in momentum in the market — demonstrated by increased completion times
  • LTVs remained relatively conservative 
  • Q1 2019 saw increased developer interest in co-living spaces, but it was unlikely that there would be a large trend of completed projects as funding would be relatively difficult to secure

The report concluded that the market was unlikely to see any significant trends emerge until at least Q4 2019, when there could potentially be greater market clarity.

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