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ARTICLE · 01 OCTOBER 2020

Property exposures update - June quarter 2020

KordaMentha
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Our June quarter update is released in the immediate aftermath of confirmation of Australia's economy shrinking.

AustraliaReal Estate and Construction
Berrick Wilson
Berrick Wilson
Brad Bennett
Brad Bennett
Paul Mirams
Paul Mirams
Sam Woods
Sam Woods
Tom Davis
Tom Davis
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The Australian Prudential Regulation Authority ('APRA') recently released its quarterly property exposure data for domestic and foreign authorised deposit-taking institutions ('ADIs').

Navigating a pandemic

Our June quarter update is released in the immediate aftermath of confirmation Australia's economy shrank 7% in the three months to June 2020. This is more than three times the next worst result on record (-2% in 1974) and erases at least two years' worth of good economic growth. Yet as dramatic as this impact is, its effects are asymmetric within and between industry sectors, adding more complexity to the already dynamic operating environment faced by commercial real estate. For this reason, APRA's capacity to closely supervise lenders' portfolio mixes, as described in our March 2020 publication, may yet become even more critical to financial system stability.

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