House building will lag behind Australian property demand throughout this year, it has been claimed.
There is unlikely to be the big rise necessary to meet demand, although construction figures will probably not decline any further, according to BIS Shrapnel economist Jason Anderson, speaking to Bloomberg.
He told the news agency: "At the moment there’s a relatively long lag between demand and rate of construction.
"We don't think the numbers will decline from here, but the really big rise we need hasn't come through."
His comments follow research by Mortgage and Finance Association of Australia (MFAA), which indicated that many Australians believe house prices will rise this year.
However, the survey indicated that 15.9 per cent of respondents will struggle to meet their mortgage repayment requirements.
Commenting on the findings, MFAA chief executive Phil Naylor said: "There are still some clouds on the horizon, with recent interest rate increases negatively impacting households."
There is unlikely to be the big rise necessary to meet demand, although construction figures will probably not decline any further, according to BIS Shrapnel economist Jason Anderson, speaking to Bloomberg.
He told the news agency: "At the moment there’s a relatively long lag between demand and rate of construction.
"We don't think the numbers will decline from here, but the really big rise we need hasn't come through."
His comments follow research by Mortgage and Finance Association of Australia (MFAA), which indicated that many Australians believe house prices will rise this year.
However, the survey indicated that 15.9 per cent of respondents will struggle to meet their mortgage repayment requirements.
Commenting on the findings, MFAA chief executive Phil Naylor said: "There are still some clouds on the horizon, with recent interest rate increases negatively impacting households."
