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ISCOVER
Staff Reporter
Brokers could see buyers enter the market towards the end of 2012, a new report has revealed.
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According to the latest BIS Shrapnel Economic Outlook Bulletin, the negative news coming out of Europe and the United States weighed heavily on consumer and business confidence at the end of last year.
It also encouraged creditors to tighten lending standards.
As such, private dwelling and non-dwelling building activity has been very low for some time.
“This under-investment has created pent up investment demand, which will drive activity from late this year provided the required funding is available,” the report read.
The report also found housing activity is likely to be most buoyant in the resource related states including NSW, Western Australia, the Northern Territory and Queensland.
“These three states will benefit from increased dwelling building activity from later this year,” the report read.
“In contrast, growth in Victoria is slowing. Some of this reflects the impact of the high Australian dollar on the manufacturing, finance and business services sectors, as well as the winding down after a strong period of dwelling building activity over the past couple of years. South Australia is doing it tough due to the high Australian dollar, but activity will be supported by a number of very large construction projects over the next few years, including the Olympic Dam expansion.”
