Uncertainty remains in the Property Sector
The latest ANZ/Property Council Survey has shown that property confidence decreased across the NT, after recording an increase last quarter.
The Property Council of Australia’s Director Northern Territory, Ruth Palmer said over the last four years, confidence levels have been trending down from historically high levels, and we are seeing this trend continue.
“This uncertainty has pushed the State Economic Growth expectations down and we are seeing a significant weakness across the Residential, Commercial and Retail capital growth expectations this quarter,” Ms Palmer said.
“With this volatility, the banks have been getting stricter on their lending requirements resulting in decreased expectations for Debt Finance Availability.
“Over the last several years, we have seen Territory Government policy artificially stimulate the supply of residential and commercial accommodation.
“Based upon market conditions the Territory Government removed these policy initiatives from the residential sector which will likely have a positive effect on market conditions.
“It is now critical that the Territory Government does not continue to artificially stimulate the supply of commercial office accommodation in the Territory.
“Any short-term economic benefits associated with this type of stimulus will be significantly outweighed by the long-term negative economic impacts related to such policy.”
Media contact: Ruth Palmer |M 0450 428 314 |E [email protected]