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AVJennings notes positive signs in market

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SYDNEY, Nov 23 AAP

November 23 2012, 11:07AM

Residential developer AVJennings is seeing some signs of improvement in the property market after a difficult year.

Managing director Peter Summers says "green shoots" appeared to be emerging in the affordable housing sector, supported by unemployment and interest rates at low levels and Australia's economic growth relatively high compared to other countries.

"In our business, we have noticed an increase in visitor flow in many projects," Mr Summers told shareholders at AVJennings annual general meeting in Melbourne on Friday.

"It is early days, but perhaps this is the start of a change in the wind."

Mr Summers noted industry analysts such as BIS Shrapnel had forecast an improvement in the property sector in 2013 and beyond, while recent media reports had adopted a more positive tone about residential property.

"There are some signs of improving market conditions in the short term," Mr Summers said.

AVJennings slumped to a $29.8 million net loss in 2011/12, as it battled weak global economic conditions, jitters over the unfolding turmoil in Europe, the high Australian dollar and the impact of natural disasters.