Developer fears plummet into the red

by Caroline Dann30 Jul 2012
Developer AV Jennings has announced it may plummet into the red as the construction of new homes declines.
The company said it faced a net loss of $27m to $37m after having to write down the value of its assets.
In a statement delivered on Friday, it blamed the sharp decline in construction figures of new residential properties, caused by consumer caution, for the loss.
"The negative consumer sentiment appears to be driven by a number of factors including concerns over the impact of macro-economic factors in Europe and the United States, and the impact on Australia of any slowdown in China." 
"It is also likely to reflect concerns over the political climate following the last federal election. As a result, some buyers appear to be delaying purchasing decisions," it said.
In February, AV Jennings reported a 71% fall in profits. The next quarter’s results will be revealed in full on August 8.