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Australian property market won't crash says Stockland CEO

According to Stockland CEO Mark Steinert, the supposed reality of the Australian property market crashing isn't a possibility.

Mr Steinert said that with regards to some of the country's major cities, Sydney's market could flatten to produce more consistent results and he expects for Perth's market to continue falling, reports CNBC.

Stockland itself reported a 51 per cent increase in its first-half net profit this year to $696 million (£342 million), which is a promising sign from this large property development company.

Of the money that the company spent on its properties, it added $433 million to the value of its newly refurbished commercial buildings.

Most of the company's properties that benefitted from the funding were shopping centres and this saw Stockland's net profit rise at the end of 2015.

Stockport's property sales saw the company's revenue increase by 19 per cent to an overall $1.6 billion.

Speaking on the company's performance Mr Steinert said: "The strong performance of our shopping centre portfolio is a good pointer for the Australian economy in general."

Mr Steinert feels that the country's residential property sector is supported and guided by Australia's employment growth. Similarly, there are also low interest rates on mortgages and a short supply of properties, which influence the strength of the market.

Having previously given a statement on Sydney's house prices, he continued: "We think in Melbourne growth will be more around flat, [up] two to three per cent, Brisbane [up] three to four per cent and Perth will probably see some continued weakness."

The main cause of the weakness in Perth seems to be a reflection of the mining sector in the area, to which it consistently falls victim. However, as the property market is expected to fall, this means that there should be cheaper property opening up for investment opportunities.

According to the Housing Industry Association (HIA), sales of new homes saw a spike in Australia in December last year, after a poor performance in the previous three months.

However, the new homes buying rate "seasonally adjusted" by six per cent at the end of 2015, after having suffered a 2.7 per cent fall in November.

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