Funding certainty takes priority as Melbourne brokers navigate the market

Melbourne, 15 October 2026: Funding certainty, lender liquidity and transparency are emerging as key priorities for commercial finance brokers, as increasingly rigorous credit assessments and property valuations add complexity to commercial real estate lending.

The insights emerged from a recent Melbourne broker roundtable hosted by Woodbridge Capital, bringing together twelve leading commercial finance brokers to discuss lending conditions, funding structures and the outlook for residential development.

Held on 7 October as part of Woodbridge’s See the Difference at the Table series, the event featured Joseph Brasacchio, Director of Residential Development at M3 Property, who shared insights into Melbourne’s development market and the changing approach to property valuations.

While brokers reported continued activity across the market, discussions highlighted growing scrutiny of non-bank lenders’ funding arrangements and increasing complexity in the market.

The conversations also revealed that borrowers are increasingly prioritising certainty of execution over marginal differences in pricing, particularly as some private lenders become more selective and demanding in their credit assessments.

Matthew Samuels, Head of Investments at Woodbridge Capital, said brokers were increasingly looking beyond headline interest rates when assessing funding options for their clients.

“Pricing will always be important, but what we’re hearing from brokers is that certainty of execution is becoming an even bigger consideration, particularly for complex commercial property transactions,” Samuels said.

“Borrowers need to know that when a lender commits to a transaction, the funding is there and the deal can proceed. A marginally cheaper interest rate means very little if the finance cannot be delivered when it is needed.

“That’s why brokers are asking more questions about where lenders’ capital comes from, how their funding structures work and whether they have the liquidity and appetite to support transactions through to completion.”

The discussions also highlighted the growing scrutiny being applied to property valuations, with lenders taking a closer look at valuation methodologies, the firms undertaking assessments and, in some cases, the individual valuers appointed to particular asset classes.

Insights presented by M3 Property’s Joseph Brasacchio also highlighted diverging conditions across Melbourne’s residential development market.

While entry-level residential projects are recording price growth, luxury developments are experiencing more mixed conditions that varies by project. Appropriately priced projects continue to attract buyers, although elevated construction costs are placing pressure on development margins.

Recent sales of development sites in Prahran and South Melbourne demonstrate continued demand for quality opportunities, with buyers taking a longer-term view of market fundamentals.

Construction costs, while remaining elevated, have stabilised, and tight rental vacancies continue to support underlying residential demand.

Samuels said these conditions reinforced the importance of experienced operators in the space who understand the risk and can find ways to provide funding solutions.

“The lending environment is more nuanced than simply whether capital is available. Lenders need to understand the underlying property market, the assumptions behind valuations and whether a project remains viable under different conditions,” he said.

“We have always communicated clearly with brokers and borrowers and continue to provide timely decisions. Brokers and borrowers need lenders who can explain their requirements, make decisions and deliver on their commitments.”

Woodbridge has continued to expand its commercial property lending activity across Australia, including a recently announced $100 million-plus construction facility supporting a 150-apartment residential development in Brisbane and a $120 million plus construction facility in lower North Shore Sydney.

“There’s still strong demand for funding quality projects, and private credit has an important role to play in supporting that activity,” Samuels said.

“For brokers, the priority is finding lending partners with the capital, experience and conviction to follow through. That is ultimately what gives borrowers the confidence to move forward.”