During October, business borrowing actually expanded by a healthy 1.1 per cent — to be 13.2 per cent for the 12-month period.
However, business debt and credit cards are considered more risky than home loans. Therefore, banks will raise their risk premium in these two areas; and not lower those lending rates, as much as the RBA’s official rate cuts.
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But for the most of 2008, Australia has basically experienced what you might term a Goldilocks market for Commercial property … “not too hot, and not too cold!”
Despite Office, Retail and Industrial being near the top of their cycles … the global turmoil has prevented the usual runaway activity occurring — in most capital Cities.
May I take this opportunity of wishing you and your family all the very best for Christmas this year. And I will look forward to catching up with you, early in the New Year.
p=. 
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