Consumers across Australia could be spurred into action in the property sector based on the principles of trigger theory, it has been claimed.
Bernard Salt, partner at KPMG and adjunct professor at Curtin University Business School, told the Property Council of Australia (PCA) that consumers have become frightened of parting with their cash in the present financial climate, but all it will take to spark a recovery is for the people to become weary of this attitude and to start spending again, which will happen over time.
He stated: "Residential property developers are also concerned about a reticence of buyers to commit to a mortgage, let alone to compete up the value of property."
Mr Salt added that the country has become gripped in the era of the frugal consumer and has been for the last four years.
The news follows a recent forecast from Jones Lang LaSalle, which highlighted a significant shift towards long term returns for property investors across the nation.
Posted by Craig Francis
