Credit crunch 'impacting Australian development'

The global financial downturn has resulted in construction projects worth more than AUD60 billion (GBP27.5 billion) being delayed throughout 2008, new figures have shown.

Statistics from Reed Construction Data revealed that over 3,400 developments - including apartment towers and office buildings - have been postponed, Property Wire reports.

This figure is more than five times the number that were halted in 2007, a fact that managing director of Reed Construction Data Rob Wild has attributed to the increased difficulty in obtaining credit.

"Developers like to get a pre-commitment, especially in flats and units, of something in the order of 70 per cent to 75 per cent, right now that's difficult," he was quoted as saying.

However, he also noted that despite many developers being "hesitant", he believes many of the projects will resume next year.

His comments follow a recent report from the Royal Institution of Chartered Surveyors, which suggested that growth in Australia's residential sector is set to slow during 2009.