Confidence in Housing and Retirement sectors leading the nation
Property Council ACT Executive Director, Adina Cirson has said that new industry sentiment results show that, whilst there has been a cooling across some segments in the market, housing and retirement capital growth expectations are at all-time highs. Territory and national market expectations are still very much in the positive.
According to the latest ANZ/Property Council Survey – the leading business sentiment index – the ACT fell 5 points across the board over the 12 months to March 2018. Despite recording a quarterly drop from 146 to 137, the ACT closed out the year well ahead of the 2013 results – which sat at just 90 points.
“Whilst the overall picture for 2017 showed decreased confidence across most segments, there remains some fluctuations to watch. We are seeing increased expectations in capital growth for the housing and retirement sectors (Retirement is up a remarkable 21 points this quarter) – correlating with what we know to be occurring in terms of market demand, as we head into what is sure to be a huge year for the ACT,” Ms Cirson said.
Despite this optimism over the quarter, we have seen a dip in residential and retail capital growth expectations, as well as forward work schedules and staffing expectations. Availability of debt has improved and is now neutral, as have interest rate expectations, whilst industrial, office and hotel capital growth expectations remain steady.
“We have been watching the survey results closely in recent quarters, particularly given some less than optimal GDP results recently. There was some concern that confidence in the market had levelled after significant growth, however overall results show the industry believes the Territory remains in a good place heading into 2018.
ANZ/Property Council Survey – March quarterly results – Australian Capital Territory
“The sector continues to watch closely on policy challenges of housing affordability, economic growth, cities and infrastructure, tax reform and energy efficiency – with respondents citing these as the top issues to monitor going forward,” Ms Cirson said.
Concern remains around the ability of Federal Government to manage and plan for growth – and this quarter also brings heightened concern around the performance of the Territory Government, with a dip of 25 points this quarter.
“It means that whilst there is confidence in the market – the ability to get on and deliver for the ACT remains heavily reliant on the Government being able to remain agile and respond to the demands in the market.
“This can be done through reduction of red tape, ensuring viability of development through fair and equitable taxes and charges, and making sure delays in planning caused by increasing volumes of approvals are minimized. We remain committed and highly engaged with the ACT Government in managing these issues in 2018,” Ms Cirson concluded.
Media contact: Adina Cirson |E [email protected]
To find out more about the ANZ/Property Council Survey and our Supporting Sponsor RCP, visit www.propertycouncil.com.au/confidence
To view select ANZ/Property Council Survey historical data series in the Property Council’s Data Room, click here.