Favourable property investment conditions need to be upheld
There have been positive developments in the residential property industry lately with interest rates falling and demand increasing.
However, an expert from Master Builders Australia stresses that favourable conditions need to be upheld to have a real impact.
Chief economist Peter Jones was pleased with recent financial statistics from November and December, noting a 2.1 per cent increase in investment loans and an increase in construction-related lends but stressed that, "the Reserve Bank still needs to do more to boost confidence and maintain a sustainable recovery in residential building."
Last week, economists were disappointed with the Reserve Bank of Australia's decision to hold cash rates at 4.25 per cent. Many industry insiders were expecting a cut, including the Real Estate Institute of Queensland.
Chief executive officer of the REIQ Anton Kardash mentioned the struggle of small businesses and had similar sentiments to Mr Jones. "You cannot overestimate how important confidence is to the overall health of our economy," he said.
Mr Jones referred to better numbers in the past, but remained confident in the encouraging conditions stating that "the housing market is beginning to pick itself off the floor".