Property sector continues to underpin economic transition says ANZ Property Council Survey

Strong confidence levels in Australia’s largest states continue to underpin Australia’s economic transition according to the latest quarterly ANZ Property Council Survey.

The findings from over 1,800 respondents across the property industry found a rise in confidence in all states except Queensland and South Australia.

“This survey heartens those who are looking to see Australia’s economic transition following the end of the mining investment boom.

“If there are red and amber lights among the states it is the sentiment in Western Australia and Queensland. 

“In Western Australia we are witnessing an improvement in confidence as well as improvements in the forward work expectations, economic growth expectations and staffing level expectations.  There are still difficult days ahead for Western Australia, but this improvement in sentiment is welcome.

“In Queensland the numbers are all pointing the wrong way. The sunshine state appears to be out of kilter with the rest of the nation. Confidence is falling with each quarter. The Queensland respondents to the survey rate their government lower than respondents in any other state.

“Fortunately New South Wales and Victoria continue to be the economic powerhouses of the sector. Respondents expressed confidence in terms of confidence, economic growth expectations and forward work schedule expectations. 

“All states with the exception of Queensland and Western Australia are expecting positive house price growth for the 12 month ahead.

Mr Morrison said the industry continued to have negative expectations about debt finance availability as well as reporting a fall in property sales to foreign buyers.

“In all of the states with foreign investor taxes (NSW, Victoria and Queensland) we are witnessing falls in the proportion of total residential property sales to foreign buyers (from 24% to 21% nationally).

“The interaction of the tightening of finance and falls in foreign buyers could result in a tightening of housing supply at a time when greater supply is needed.

Mr Morrison said the survey reported a deterioration in perceptions about the performance of the Federal Government.

“Confidence in government is vital as it feeds into decision making and confidence throughout the industry. 

Richard Yetsenga, ANZ Chief Economist said the survey shows that firms are more optimistic around the outlook for the property sector. A net 29% of respondents expect conditions in the property sector to improve over the next 12 months, up from 27% in the previous quarter. Encouragingly, this improved outlook is broadly based across most areas of the economy.

“The outlook for commercial property is still more positive than the residential sector. Sentiment in commercial offices has been rising over the past 12 months, supported by solid employment growth in the key Sydney and Melbourne markets”

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Media contact:  Paul Ritchie |  E [email protected]