Developers feel perky

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New Zealand property developers and financiers are more optimistic about their prospects than Australians.

Research by international consultants Davis Langdon showed Australians took a dimmer view, research manager Michael Skelton said.

"New Zealanders have a more positive outlook with a majority expecting a better finance situation in 12 to 18 months, whereas most Australian respondents are expecting to wait over two years," he said.

"This may indicate that New Zealanders seeking finance from Australian banks could be faced with protracted credit constraints."

People were asked to identify barriers and solutions to the constraints.

"Although opinions are mixed regarding when credit restrictions will ease, developers and financiers are certain there will be no change during 2010. Nearly 60 per cent of financiers expect the situation to turnaround in 12 to 18 months while most developers are expecting to wait 18 to 24 months," Skelton said.

"Developers viewed the loan-to-equity ratios as very conservative and unworkable, particularly when combined with shrinking valuations and a lack of second tier finance," he said.