Developer predicts rise in home loan uptake

A major house building developer in the Perth and Melbourne area has predicted uptake of home loans to grow in 2012.

Bosses at Cedar Woods told the Australian Associated Press that the firm is expecting to post profits in the region of $34 million for the full financial year.

This comes after the business clawed in a profit of $10 million in the six months leading up to December 2011 and managing director Paul Sadleir suggested that more new-builds will be given the green light in 2012, as declining interest rates have resulted in greater demand for mortgages across the country.

Having cut rates twice at the end of last year, the Reserve Bank of Australia could yet sanction further readjustments in February.

"Recent cuts to interest rates have improved housing affordability and we expect this to improve consumer confidence and provide a boost to sales in 2012," Mr Sadleir told the news provider.

Figures released by the Australian Bureau of Statistics last week showed that the demand for home loans increased by 1.4 per cent in November 2011.

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