Investment in Australian property across the commercial sector needs to pick up for a recovery to get underway in the building sector, according to the Master Builders Association (MBA).
Speaking to the Sydney Morning Herald, Victorian executive director of the MBA Brian Welch said: "Tougher conditions are being imposed by lenders.
"Builders and developers are expected to have a high number of presales prior to loan approval and some are expected to place their own equity into the project before the banks will look at them."
Earlier this month, the MBA suggested that the government's stimulus spending had helped to ensure that the building and construction sectors remained stable throughout the global economic downturn.
However, MBA chief economist Peter Jones warned that it remains to be seen whether a rebound in building confidence will translate into improved business conditions as the country battles with its financial problems.