THE higher interest rate and cost-of-living combination will make for a challenging environment for new-home building this year, according to Stuart Collins, local executive director of the Housing Industry Association.
“There is certainly evidence that the Reserve Bank of Australia may have overcooked monetary policy,” Mr Collins said. “We do, however, continue to expect an improvement in conditions again as we move through 2009 with underlying demand remaining strong and the government rolling out initiatives aimed at addressing infrastructure costs, taxes and land release.”
On the other hand, John Miller, executive director of Master Builders ACT, says interest rates are biting into Canberra’s home-building industry.
Pointing to the latest housing finance figures from the Australian Bureau of Statistics, Mr Miller said they provided “clear-cut evidence of the degree to which the Australian home-building industry has been hit by successive interest rate rises”.
“For the ACT, commitments were down by 8 per cent in seasonally-adjusted terms and the trend data also shows Canberra heading into negative territory,” he said.

THERE were congratulations all round last week when the Ray White NSW CEO, Stephen Nell, made a flying visit to Canberra to praise staff for their sales efforts at the new Ray White Canberra office at Phillip.
“Currently, one-in-10 houses throughout Australia is sold by Ray White and we hope that we will be even stronger in the nation’s capital in the short future,” Mr Nell said.
“With the support of over 1000 offices throughout Australasia, we hope that our proven track record and the new tools that we bring to the table will help make Canberrans see why we’re Australia’s only real estate ‘supergroup’.”
Ray White Canberra director Scott Crossman begged to differ. “While we have a great amount of backing and are part of the biggest real estate organisation in Australia, we still have to prove ourselves in Canberra’s market – and we will,” Mr Crossman said. “All we ask is that Canberrans give us that opportunity.”

WITH a price tag of $1.15 million, a “classic” three-bedroom townhouse at 18/3 Ovens Street, Griffith, has had interest from purchasers, but Sandy Funston, from Richard Luton Manuka, said the offers did not suit the vendor.
The residence, which is in a tranquil, tree-lined street and a short stroll to Manuka and Kingston, is considered to be one of the finest in the prestigious Georgetown complex, which includes a swimming pool and gymnasium.