World Economy

Risk of Defaulting

Risk of DefaultingRisk of Defaulting

Australian restrictions on lending to foreign investors may put pressure on the nation’s apartment market as some buyers default on commitments, the Australian reported, citing research by Macquarie, Bloomberg reported. The research shows that one in every six apartments sold to Chinese buyers by Lendlease Group and Mirvac Group could be at risk of settling late or defaulting, the newspaper said. The analysis says buyers are looking for alternative funding amid tighter restrictions on Chinese capital outflows and a decline in the willingness of Australian banks to lend to foreigners, according to the report. Macquarie estimates Lendlease and Mirvac have pre-sold about A$3.1 billion ($2.3 billion) in property to foreign investors, the newspaper said.