RP Data Ltd says improving consumer confidence is driving a rise in property sales deals, even though affordability remains low.

The listed property information provider also said that while it would not give any earnings guidance for 2009/10, it expected to gain market share as the economic recovery gathered pace.

“The company continues as a market leader and as such will be in a position to gain market share as the general market improves and real estate activity increases in line with the market,” chairman Ian Fraser told shareholders at the company’s annual general meeting on Tuesday.

Mr Fraser said RP Data saw several positive signs that market conditions are improving.

“Property sales transaction volumes are increasing, home price affordability remains at historic lows, housing demand is high with a growing population and an undersupply of new housing, [and] improving consumer and business confidence,” he said.

Chief executive Graham Mirabito said the encouraging outlook would drive demand for RP Data services.

He noted also that Australian banks are in good shape and continue to provide funding to the property market, albeit cautiously.

In August, RP Data reported a 45 per cent fall in net profit for 2008/09 to $5.58 million, after revenue increased five per cent to $49.09 million.

RP Data shares were untraded at 1250 AEDT, after last trading at 89 cents.

AAP