Major banks’ dominance wanes, according to new research

Non-bank lending now accounts for a 16% market share of the Australian commercial real estate debt (ACRED), marking a significant rise from 10.4% in 2020.

This growth contrasts with the decline of major banks’ dominance in the sector, which has fallen from 86% to 73% over the last 10 years, according to a study commissioned by Payton Capital and conducted by Foresight Analytics.

The trend, Payton Capital said, also highlights significant opportunities for both borrowers and investors, with a clear shift from major bank financing towards non-bank lenders within the property development arena.

The research estimates the non-bank ACRED market’s value at $74 billion and projects the potential for this market to double within the next five years.

David Payton (pictured), chief executive of Payton Capital, emphasised the importance of the findings, which corroborate the observed shift towards non-bank lending.

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