While property experts are forecasting strong reductions in residential dwelling commencements, the figures are likely to be much higher and the impact will be significant on both the broader economy and, particularly, GDP growth.

This is the message from RiskWise Property Research and Development Finance Partners (DFP), a major financier for developers, which jointly have assessed a number of key risk indicators in relation to residential dwelling commencements.

Their conclusions are dire with projections, particularly for units, far worse than initially predicted.

RiskWise CEO Doron Peleg said key risk indicators that provided six-to-12 month lead in to dwelling commencements were not included in the available data which showed a major risk of stronger reductions than expected.

"This means there is a high risk that the broader economy and GDP growth will be materially impacted," Mr Peleg said.

These risk indicators include :

* Failure to meet pre-sales and sales targets by developers;

* Lower sale volume and less focus by some property marketers on units in areas that are harder to sell;

* Very low developer confidence, based on this year's DFP Market Sentiment Survey;

* More conservative approaches and thorough risk-management practices by developers;

* Very low risk appetite and conservative risk-management practices by lenders;

* Lending restrictions and 'black list' areas by lenders for both residential lending and construction loans;

* The 'pipeline' of available funds shrinking;

* Significantly lower LVR (i.e. higher deposit) for property developments and very high rate of pre-sales as a condition to proceed to commencements; and difficulties getting finance from alternative financiers.