Debenture funding for property sector ‘dead’

The report's comments were echoed by Finance Direct managing director Wayne Croad.

"Debenture funding for property development is dead, mainly because there's no regular cash flow," Croad said.

The report says future funding for property development projects will require "new funding models better suited to the financing of higher risk jobs" such as private-equity backed vehicles.

Savings & Loans managing director Scott Masters says that while there has definitely been a reduction in non-bank lending for property development, demand will remain.