There are parts of the private credit market that will struggle over the next 12-24 months, predicts Msquared Capital’s Paul Miron. In his latest interview with Ausbiz, he says construction and development lending is particularly vulnerable to economic conditions and contagion risks. Budget measures continue to see turbulence in property valuations, while at the same time, debt-laden developers rely on constant property sales to sustain cash flow.
- Msquared Capital predicts broad property price declines from their 2026 peak of at least 10%, with some segments down 15–20%
- Construction and development lending is viewed as high risk amid rising costs and falling end values
- Expects some private credit assets will be challenged for the next 12-24 months
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Watch the interview with Ausbiz
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One Managed Investment Funds Limited ACN 117 400 987 AFSL 297042 (OIG) is responsible entity and issuer of units in Msquared Mortgage Income Fund ARSN 682 099 350 (MMIF or Fund). Msquared Capital Retail Funds Management Pty Ltd ACN 679 611 146 is the investment manager of MMIF (Manager). The Manager is a corporate authorised representative (no. 1312858) of One Investment Administration Ltd ACN 072 899 060 AFSL 225064 (OIAL) in respect of financial services provided to ‘retail clients’ (as defined in the Corporations Act) (Retail Clients). The Manager is also a corporate authorised representative (no. 1312533) of Msquared Capital Pty Ltd ACN 622 507 297 AFSL 520293 (Msquared Capital) in respect of financial services (including general financial product advice in relation to the Fund) provided to ‘wholesale clients’ only (as defined in the Corporations Act) (Wholesale Clients). The information provided on this website (Information) is general in nature and does not constitute investment or personal financial product advice, and does not take into account your investment objectives, particular needs or financial situation. You should seek independent financial advice.
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