AMP tightens again on apartment mortgages

From the AFR:

Amid concerns about a looming oversupply of apartments, off-the-plan sales, different valuation methods and falling prices, AMP Bank, the banking division of the financial services group, describes its latest squeeze on lending to apartment buyers as a “prudent approach”.

Loan applicants for apartments around popular high-rise postcodes in Melbourne and Sydney, most of central Adelaide and Perth, Brisbane’s central business district and large parts of the Gold Coast and Darwin are included on the new list.

 …Under the arrangements, loan applications in high density postcodes will not longer be eligible for Automated Valuations Model (AVM) valuations, which is a desktop computer system for producing real estate values.

They are designed to augment, or replace, traditional appraisal reports completed by professional valuers. Under the new arrangements, valuations will be based on visits by an appraiser.