Confidence dips in property sector this quarter but remains second highest in the country
ACT Executive Director of the Property Council, Adina Cirson said that despite confidence dropping over the last 12 months, the latest ANZ/Property Council Survey of ACT property industry sentiment shows increasing optimism towards construction and staffing levels – topping the nation in both indicators.
According to the March 2019 quarter survey the ACT recorded a slight downward shift in sentiment, down four points to 130 from the previous quarter. Despite the drop, the ACT remains in a solid position overall nationally, with the second-highest confidence index after South Australia. The March 2019 result is well up from just 85 index points measured in 2012. A score of 100 is considered neutral.
“The ACT remains in a strong position as we kick start the year which bodes well for an even busier 2019 here in the nation’s capital,” Ms Cirson said.
“We have seen a dip in housing, retirement living, office and industrial capital growth expectations, however this is being countered by increased confidence in the hotel and retail markets. Expectations around the availability of debt finance have plunged further into the negative, now at -35 index points.
“Expectations for economic growth in the ACT over the next 12 months have dropped into the negative, with a similar theme when it comes to ACT Government performance. There has been a slight improvement in the confidence around the Federal Government being able deliver policies that encourage jobs and economic growth with sentiment of respondents in the ACT lifting back into the positive.
ANZ/Property Council Survey – March 2019 quarter results – Australian Capital Territory
“These quarterly results are showing that the ACT remains positive overall at the beginning of 2019, with indicators such as forward work schedule expectations still leading the nation, combined with yet another quarter of increased confidence in the sector looking to hire more staff - indicating a positive financial outlook,” Ms Cirson said.
Retirement living growth expectations have again dipped, telling the story of rising demand for retirement living product to match the increased growth of the ACT’s population – and an urgent need to start delivering greater housing choice for our ageing demographic.
“We remain concerned that demand is outstripping supply in the retirement living sector. According to the latest ACT population projections, it is estimated that the number of seniors (65+) will increase from 53,000 in 2018 to 95,000 by 2041. If this trend continues, the number of seniors will reach 120,000 by 2050,” Ms Cirson said.
“The ACT is one of the fastest growing regions in Australia. We continue to push the ACT Government for streamlined planning approvals, and the right tax framework and incentives in place to encourage development where and when it is needed.
“Our housing typology needs to reflect and meet the future needs of our city and a fuller understanding of the density that needs to be created – and this is critical to long term planning for our future residents,” Ms Cirson concluded.
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Media contact: Adina Cirson | M 0429 579 972 | E [email protected]