Lender appetite strengthens – what does it mean for developers and investors?
As Newcastle’s commercial property market continues to evolve, new data from Stamford Capital’s 2025 National Debt Capital Markets Survey reveals a significant shift in lender sentiment. With insights from over 100 banks, non-banks, and private credit providers, the message is clear: capital is flowing, and competition among lenders is heating up.
Lenders compete for quality commercial property deals
Despite broader economic uncertainty, lenders are actively pursuing high-quality commercial property opportunities. According to the survey, 61% of banks are targeting commercial investment deals, with margins compressing by 50 basis points—reaching their lowest levels in recent memory. This signals a renewed appetite for stable, income-generating assets across Australia, including in high-growth regional markets like Newcastle.
Development finance becomes more accessible
One of the most notable shifts in 2025 is the easing of pre-sale requirements for development funding. Where lenders previously required 60–70% pre-sales, many now accept just 30–35%. Even more significantly, one-third of lenders no longer require any pre-sales at all. This change offers developers greater flexibility and speed to move forward with construction—especially valuable in a market where timing is everything.
What this means for Newcastle’s property sector
For developers, investors, and commercial property owners in Newcastle, these lending trends present a timely opportunity. With the city’s industrial and mixed-use sectors expanding—driven by infrastructure investment and population growth—access to more flexible finance could unlock new projects and accelerate delivery timelines.
Whether you're acquiring, refinancing, or developing, having your finances in order and aligning early with lenders can be a key differentiator in a competitive market.
If you’re considering a project or acquisition or simply want to start your finance journey, chat to our sales team who can connect you with our partners at Stamford Capital.
