Housing markets in Sydney and Melbourne remain fundamentally undersupplied and little impact has seen on the new policies targeting at foreign buyers; says developer Mirvac. Mirvac has witnessed continued growth driven by the high quality pipeline. Ms Lloyd-Hurwitz; Group Chief Executive at Mirvac says; we also expect to benefit from the substantial investment in infrartsucture the NSW and Victorian governments are making; with a number of our residential projects located near proposed major transport lines. The company's return on invested capital (ROIC) in the residential building division was marked at 18 per cent; higher than the 2017's target of 15 per cent. This is because of a small percentage of FIRB international buyers have withdrawn from sales. Meanwhile; these buyers have contributed 24 per cent of Mirvac pre-sales pipeline bringing $2.7bn revenue to the company. The number has decreased by 2 per cent compared with last year. In Sydney; Mirvac will keep its focus on apartments; especially those near the train station. A partnership was signed between Mirvac and the Australian Turd Club to build surplus land next to Canterbury Racecourse. In Melbourne; company shifted its focus on masterplanned communities providing 162 homes at Tullamarine. Residential construction tends to be very sensitive to interest rates. So falling interest rates from late 2011; combined with strong population growth; increased foreign demand and pent up demand from underbuilding in previous years meant that a boom was inevitable;mresearch from the Reserve Bank says. The falling number of residential building approvals from last year's peak may lead to a decline of construction activity; the Bank also warned. BIS Oxford Economics has expected a drop of 31 per cent in the level of dwellings from 230;000; to 160;000 in coming three years.