A RISE in house prices in Sydney’s suburbs is needed to rescue the home building industry from the worst slump it has had nation-wide in a quarter of a century.
But with rising interest rates and the tightening on easy credit, the likely hood of further rises in prices become bleak.
Louis Christopher, head of property research at the investment firm Adviser Edge, yesterday said many developers had built massive land banks at the top of the market in 2003. “When land and house prices fell in NSW in 2004 and 2005, they couldn’t actually build without doing so at a loss, so they have held off, waiting for prices to build up again. “They made a huge mistake back in the last peak — they’ve got a huge stock of land they cannot build at a profit.”
» Home building slump worst in 25 years – The News, 5th October 2007.
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