Confidence down in Victoria as property taxes bite
The latest ANZ/Property Council Survey shows Victorian respondents’ sentiment dropped from a high of 140 last quarter to 135 on the index for the September 2017 quarter.
The total index score for Australia also dropped slightly from 135 to 132 points. 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 1,737 respondents for their forward-looking views.
Property Council Victorian Executive Director, Sally Capp, said the Victorian property industry sentiment is down on most indicators.
“Property tax increases are hurting the industry – particularly land tax, where bracket creep and rising valuations are being felt in every asset class. Combined with high taxes on foreign investors and new taxes such as the vacancy tax, Victoria’s property investment community are being taxed at every turn.”
“Debt finance availability expectations have declined again, with increasing opportunities from alternative funding providers,” said Ms Capp.
The latest ANZ/Property Council Survey reveals a national positive shift in construction activity sentiment for office, retirement, industrial and hotels, with a decline in sentiment for residential and retail.
“The latest survey indicates a lack of confidence across most indices. To keep our economy strong, Government and Industry must work together to create the right economic environment to attract investment.”
“We continue to work with Government on planning and population growth management issues to reduce costs, increase jobs and support stronger communities,” said Ms Capp.
Fast Facts (Victoria):
- Victorian index score: dropped 5 points to 135 points this quarter.
- Debt finance availability: Victoria’s debt availability declined from -13 to -19 points.
- Foreign residential property sales: the proportion of total residential property sales to foreign buyers has increased slightly from 22% to 23%.
Media contact: Sally Capp | E [email protected]
To find out more about the ANZ/Property Council Survey and our Supporting Sponsor RCP, visit www.propertycouncil.com.au/confidence