Mirvac chairman denies housing decline

by Adam Smith18 Nov 2011

Property developer Mirvac has denied that Australian houses are set to fall in value, it has been reported.

News Ltd has reported that chairman James MacKenzie told shareholders at the company's annual general meeting that a significant decline in property values was unlikely.

"Residential property demand is underpinned by an increasing dwelling shortfall and supported by low unemployment. Nationally, it would take, in our view, around one-and-a-half years of current housing production just to eradicate the shortfall," MacKenzie said.

Undermining MacKenzie's assessment are recent findings by RP Data, which pointed to a growing stock overhang across Australia. The research firm indicated that unsold stock had reached near-record levels, and would take 7.4 months to clear.

"A spike in recent listings data acquired by RP Data suggests that available stock is at near-to record levels and is being driven by mounting levels of re-listings. This result is indicative of slower market conditions and longer than normal selling periods," analyst Cameron Kusher said.

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