NSW property industry on watching brief 

The NSW property industry remains buoyant but is keeping a close eye on lending conditions and price growth in the residential sector, according to a new survey.

The ANZ/Property Council Survey is the nation’s leading measure of industry confidence, with over 1500 respondents across Australia and 463 in NSW this quarter.

Confidence levels in NSW fell slightly from 144 to 142 in the past quarter – on an index where 100 is neutral – but remains above the nation-wide average of 131.

“The State has strong expectations around staffing levels, as well as a big kick in expectations on national economic growth,” NSW Executive Director Glenn Byres said.

“It also retains a positive view of the performance of the state government in managing and planning for growth.

“But capital growth expectations for most assets slid marginally – though the biggest drop came in the residential sector.

“Expectations around debt financing and house capital growth are both in the negative.

“In fact, over the past 12 months, expectations for house capital growth have fallen from 59.7 to minus 2.6.

“The housing market remains crucial to the State’s economic fortune so policymakers need to ensure they are not caught off guard in responding.

“NSW needs to do a better job of fixing its planning system, lowering its infrastructure charges and pushing for abolition of stamp duty to keep improving housing affordability.”

Media contact: Glenn Byres | E gbyres@propertycouncil.com.au