A higher proportion of off-the-plan buyers, roughly one in 20, walked away from their Melbourne apartment purchases in June, according to Maddocks.

The law firm processed over 800 apartments contracts in June and recorded that 5 per cent of deals did not settle. This compares with a historical average of about 3 per cent. Default rates were just 2 per cent between February and April, but volumes were lower.

Of those buyers who did not settle in June, roughly two-thirds were foreign-based.

One in 20 Melbourne apartments bought off the plan are not settling. Penny Stephens

While still a small proportion of settlements, rising defaults indicate more purchasers are struggling to obtain financing following the major banks pulling back from lending to foreign buyers. The Australian Financial Review recently reported that private equity groups were stepping up to lend to developers and purchasers, albeit at higher interest rates.

Lenders like Macquarie Bank have added to the finance squeeze by restricting their lending in high-density suburbs including the Melbourne CBD and Docklands.