Australian new builds 'set to decrease'

Construction of new build homes in Australia is set to cool over the next year, new data from the Royal Institution of Chartered Surveyors (Rics) has revealed.

Investors may be keen to buy property in the country in the current climate as, according to Rics, the residential sector is slowing and builder confidence may be knocked, meaning fewer new houses in 2009.

However, the body noted that the market has shown resilience despite the global economic downturn.

Its figures show that the Australian construction sector grew by three per cent between September 2007 and September 2008.

Rics added that economy is likely to benefit from recent base rate cuts.

The Reserve Bank of Australia has slashed the base rate by 300 basis points in three consecutive months.

Earlier this week, Brett Draffen of Mirovac Group told the Australian that there has been an increase in investment activity in the last couple of months.