Housing capital growth rises whilst credit outlook eases
Victorian business sentiment has improved slightly against a backdrop of rising capital growth and declining credit access during the December 2016 quarter.
The latest ANZ/Property Council Survey shows Victorian respondents’ sentiment rose two points to 139 on the index for the December 2016 quarter.
The total index score for Australia also improved two points to 130 for the December quarter. A score of 100 is considered neutral.
The ANZ/Property Council Survey is the nation’s leading measure of confidence in the property industry and polled 1,815 respondents for their forward-looking views.
Property Council Victorian Executive Director, Sally Capp, said the Victorian property industry has mixed views about the future as a result of declining credit access and rising taxes.
“Tightening credit conditions are causing angst in an industry already grappling with spikes in land tax, rates, stamp duty and the fire services property levy,” said Mrs Capp.
“The latest ANZ/Property Council Survey reveals Victorian residential construction activity expectations have fallen 30.8 points over the past two years with a 5.3 point growth occurring in the December 2016 quarter.
“Recent changes in lending and tax policy will make entering the Victorian housing market all the tougher for first homebuyers.
“The Government should keep these developments in mind as they consider their final positions on Plan Melbourne, C270 Central City Built Form Controls, zone reform and Apartment Design Guidelines.
“A policy misstep in any of these critical areas could make the great Australian impossible for the next generation of Victorians.”
- Victorian index score: rose to 139 from the September 2016 quarter to the December 2016 quarter;
- Capital growth expectations: capital growth sentiment from the September 2016 quarter to the December 2016 quarter for housing improved from 4.8 to 15.5; and
- Residential construction activity expectations: Victoria continued its easing trend with a moderate growth of 5.3 points in the December 2016 quarter.
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.