Sentiment holds steady despite warning signs

Victorian business sentiment has remained steady against a backdrop of declining credit access during the December 2016 quarter.

The latest ANZ/Property Council Survey shows Victorian respondents’ sentiment remained at 139 on the index for the March 2017 quarter.

The total index score for Australia also improved two points to 132 for the March 2017 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 1,524 respondents for their forward-looking views.

Property Council Victorian Executive Director, Sally Capp, said the Victorian property industry has mixed views about the future because 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 Ms Capp.

 The latest ANZ/Property Council Survey reveals a slight decline in state economic growth expectations, as well as forward work schedule expectations.  Perception of the Victorian Government’s performance also declined this quarter.

“The direction of the Victorian economy is currently uncertain: good investment-attracting policies could help build on previous success; harmful regressive policies that stifle investment and growth would be damaging.

“The Government should keep the state’s economic performance in mind as they consider their final positions on the Plan Melbourne Refresh, zone reform and value capture.

“A policy misstep in any of these critical areas could set Victoria on the wrong economic course,” said Ms Capp.

 

Fast Facts (Victoria):

  • Victorian index score: remained steady at 139 from December 2016
  • House Capital growth expectations: capital growth sentiment from the December 2016 quarter to the March 2017 quarter for housing improved from 15.5 to 21.2
  • Office Capital growth expectations: the office market is a strong performer with an increase in growth expectations from 15.9 in December 2016 to 20.4 in March 2017

 

Media contact:  Asher Judah | M 0499 841 715 |   E ajudah@propertycouncil.com.au

To find out more about the ANZ/Property Council Survey and our Supporting Sponsor RCP, visit www.propertycouncil.com.au/confidence