The one per cent interest rate cut announced by the Reserve Bank will mean an increase in home buyer demand but will not provide any relief for developers struggling to finance new projects, according to national property and construction consultants Davis Langdon.

Davis Langdon managing director Mark Beattie said the latest cut would only widen the gap in the building and construction industry with demand increasing but supply still unable to be funded.

“This latest cut will make finance cheaper at a retail level, but will not make it any easier or cheaper to obtain commercial finance to get large scale projects going,” said Mr Beattie.

“With demand in the home buyer sector increasing and rental rates on the rise because of a shortage of housing, this will only create a greater predicament for the building and construction sector.

For further information, contact Meaghan Jones on +61 3 9933 8800 or email mjones2@davislangdon.com.au