The latest rate cut announced by the Reserve Bank is likely to have only a neutral impact on the construction industry according to national property and construction consultants Davis Langdon.

Davis Langdon managing director Mark Beattie said the latest cut – along with the recent series of cuts by the RBA – would benefit the housing construction sector, but would not have any significant impact on commercial development.

“Any rate cut has to be seen in the light of falling industry volumes," said Mr Beattie. “Further reductions in interest rates will not necessarily stimulate this industry.

“What the commercial construction sector now requires is access to credit to stimulate new projects and provide confidence for forward planning.

"Not until interest rate cuts and other stimulus measures have a positive impact on local and global finances are we likely to see any improvement in the current low sentiment in the commercial construction industry.”

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