GOLD Coast developer James Elliott says record low interest rates are starting to grow teeth. Mr Elliott, chief executive of construction and property company Red Dog Group, said cheaper home loans were definitely helping to boost building across southeast Queensland. “You only have to look at Brisbane’s skyline to see that construction is doing well,” said Mr Elliott, referring to the increasing number of residential development building sites.
Mr Elliott said the company, which is involved in home unit and housing developments as well as prefabricated or modular building for the mining industry, was performing well. Earlier this year the 12-year old company launched a number of new investment opportunities for joint venture partnerships. It has more than $4 million worth of projects in production from residential apartments to townhouses, single homes and commercial projects.
Mr Elliott conceded demand for the company’s prefabricated buildings had been hit by the mining downturn but even that could improve in the future. “There have been some improvements in iron ore prices which could help that sector so we will have to wait and see,” Mr Elliott said.
He agreed that interest rates were unlikely to be cut for the time being as a period of time was needed for earlier reductions to flow through to the rest of the economy.