NSW property industry confidence remains steady
Property Industry confidence is still comparatively high in NSW but residential construction activity expectations remain low according to a new survey.
The ANZ/Property Council Survey is the nation’s leading measure of industry confidence, with more than 1,800 respondents across Australia and 572 in NSW this quarter.
The survey shows that NSW industry confidence has dropped marginally in the past 12 months – from 144 down to 142 on an index where 100 is neutral – however confidence levels were still above the nation-wide average of 130.
The survey also shows that construction activity expectations in the residential sector remain low despite steadying two index points in this quarter, having dropped 22.3 index points since last December.
Property Council NSW Executive Director Jane Fitzgerald said while confidence remains steady, there are signs of some softening in industry confidence.
“NSW property industry confidence still remains strong along with the ACT, taking lead in the nation despite some softening of sentiment.”
“Expectations around state economic growth remain robust and expectations for house capital growth are high.
“Although residential construction expectations have steadied 2 index points in the past quarter, it has been a sharp drop since September last year.
“Construction activity expectations in all other sectors remain strong and trending upwards, so we need to see the recovery in residential construction continue to match other sectors.
“To continue this recovery, policymakers need to look at planning reform to make it easier for the industry to build the houses NSW needs.
“The NSW economy relies on a strong housing market, and we hope to see action to address constraints on the industry to build confidence and new homes for our state.”
To find out more about the ANZ/Property Council Survey and our Supporting Sponsor RCP, visit www.propertycouncil.com.au/confidence or download the Chartbook below.