We are normally concerned around the impact that consumer confidence has on the industry - and the broader economy, but interesting commentary from Mark Bouris of Yellow Brick Road who is highlighting the importance of maintaining developer confidence. 

There aren't to many that would describe Property Developers by their nature as lacking confidence - but the general feel of many out there who are trying to finance projects in the current environment is that its just too hard (or too costly) with the traditional lenders at present.

The banks point the finger back at our regulatory authority, APRA and the remit around investor lending and restrictions on interest only facilities.  

The tightening of the lending criteria and cost of debt is going to mean some projects don't get out of the ground.  Or perhaps they will but it won't be until the next cycle if the developer is able to sit on the site. 

In a time when affordability is an issue - we need to have a close watch on the impact that the lending restrictions are having on the Developers and the level of supply that gets to the market - if the supply side gets tight, we are going to be left with higher prices that continue to squeeze out those trying to become home owners.