He told the Adviser that last year's interest rate cuts from the Reserve Bank of Australia have improved both the cost of homes and the serviceability of mortgages in many parts of the country.
However, other factors have also played a part in the drop in property prices, according to Mr McCarthy.
"The global financial crisis had a huge impact on consumer confidence, which has ultimately forced house prices to fall," he said.
People are no longer looking for a holiday home in the country as the volatile economic climate reduces an appetite for risky investments, according to the managing director.
This is also reflected in recent data from the Property Council of Australia revealing that construction in the country suffered from a slowdown over the course of 2011.
Posted by Steve Douglas
