From strong growth in the property development sector; a growing focus on ESG-focussed debt products; and an increase in unitranche facilities for acquisition financing, we look ahead to the rest of 2021 and share some of our key predictions for banking and finance.
Real estate development finance
Since the initial months of the pandemic, property markets have strengthened significantly in most capital cities and regional areas. For this reason, we are seeing continued strong growth in the property development sector coupled with a willingness of most bank and non-bank lenders to provide funding.
In markets like Perth, which had been subdued for years, this has translated not only into more deals, but also bigger deals. We think this trend will continue for at least the first half of 2021, but it will be interesting to see where the market settles once the government stimulus of the industry is withdrawn.
