Property industry calls for greater activity
The confidence of Queensland’s property industry continues to lag well behind other major states according to the latest quarterly ANZ/Property Council sentiment survey.
Whilst the overall national sentiment has not moved over the last twelve months, industry confidence in Queensland has recorded a decline of 12 index points. This quarter’s results indicate that the decline in Queensland’s confidence is levelling out, with a small drop recorded from 121 to 120 index points.
Property Council Queensland Executive Director, Chris Mountford, said that there is a need for greater activity from government to ensure that this level of industry confidence does not become the new norm.
“To continue to attract investment in job-creating Queensland projects, the local property industry needs confidence,” Mr Mountford said.
“Critical to confidence is stable policy-making and strong government investment in new infrastructure, two ingredients not currently in abundance in Queensland.”
“The introduction of a new tax on foreign investors in residential property has clearly sent the wrong message and had a definite impact on industry attitudes to doing business in Queensland, at an acute time for the market.”
“Despite recently announcing tax exemptions for Australian-based foreign-controlled companies, the new tax will serve as a disincentive for many property purchasers currently considering local investment opportunities.”
In a sign that the foreign appetite for Queensland property is hesitating, the latest quarterly results indicate the first decline in foreign residential property sales for Queensland since the March quarter of 2015.
“It is clear that Queensland needs a circuit-breaker to increase economic activity and boost industry confidence,” Mr Mountford said.
“Last week’s announcement by the State Government of a new strategy to put surplus government-owned land up for development in key zones is the sort of shot in the arm that the state’s economy needs.”
“This confidence survey was taken prior to the recent announcement, so it will be interesting to see how this new strategy, and the release of the draft SEQ Regional Plan later this month, will be received by industry in our next survey.”
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.