Nation’s Capital property industry showing strong signs of confidence
Property Council ACT Executive Director, Adina Cirson says strong quarterly industry sentiment results show growing confidence in forward work schedules, staffing expectations and housing, and office market growth expectations - with many indicators leading the nation.
According to the latest ANZ/Property Council Survey – the leading business sentiment index – the ACT increased 7 points for the June 2018 up from 137 to 144 – demonstrating positive levels of confidence in the property sector as we close out the financial year. (A score of 100 is considered neutral.)
Overall, we have seen fairly steady results since this time last year, with the June quarterly results revealing a growing optimism across many of the indicators, with the ACT being one of the leading jurisdictions across many of the indicators. It must also be remembered that this is a big improvement on results we saw five years ago when confidence sat at just 90 points in 2013.
“The ACT results confirm positive expectations for our city - with growth projected in forward work schedules and a huge increase in staffing level expectations – up 15.9 points this quarter, with the ACT now leading the country.
“This means the sector is feeling more confident about locking into labour costs and is feeling very confident about hiring more staff, which means they also have confidence that their financial position and that the broader economy will continue to improve,” Ms Cirson said.
Whilst economic growth expectations for the ACT and the national economy remain steady and in the positive, there is growing concern about rising interest rates and tightening around access to debt finance that needs careful monitoring.
We have also seen significant drops in retail expectations, and most notably the retirement sector coming off a particularly high previous quarter – nonetheless it is clear this is a downward trend not being experienced by other jurisdictions.
In the ACT, the sector is clearly worried about the availability of land supply to meet the growing demand for independent retirement living dwellings – highlighting the ongoing concern about lack of housing diversity in the market – particularly for our ageing population.
“The sector continues to watch closely on policy challenges of cities and infrastructure, housing affordability, economic growth, tax reform, energy efficiency and global capital– with respondents citing these as the top issues to monitor going forward,” Ms Cirson said.
ANZ/Property Council Survey – March quarterly results – Australian Capital Territory
There is much more optimism in the ACT about the Federal Government being able to deliver policies that encourage jobs and economic growth. Sentiment towards the Territory Government on its planning for and managing growth remains in the negative but has shown improvement this quarter.
“It means that whilst there is confidence in the market – the ability to get on and deliver for Canberra remains heavily reliant on the ACT 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 minimised. We remain committed and highly engaged with the ACT Government in managing these issues in 2018,” Ms Cirson concluded.
Media contact: Adina Cirson |M 0429 579 972|E [email protected]
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To find out more about the ANZ/Property Council Survey and our Support Sponsor RCP, visit: www.propertycouncil.com.au/confidence