- Economists at investment bank UBS are increasingly confident a “correction” is taking place in residential construction, led by a slowdown in the apartment sector. But they argue house prices are set to grow more slowly, rather than drop, due to very low interest rates and growth in population.
Scott Haslem and George Tharenou cut their forecasts for dwelling commencements for this year and next in a report to clients last week, also arguing house price growth had been “unsustainable”.
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Residential construction fell in the latest quarter and economists at UBS expect the trend to continue. Photo: Louise Kennerley