VICTORIAN CONFIDENCE DROPS BUT OUTLOOK REMAINS POSITIVE

The latest ANZ/Property Council of Australia industry confidence survey shows Victoria still lags behind the rest of the nation as property industry confidence levels remained at near record highs across the country.

Property industry confidence in Victoria is the lowest in Australia at 122 index points for the June 2021 quarter, below the national average of 139 index points. A score of 100 is considered neutral.

The latest quarterly survey comes shortly after the end of Victoria’s most recent lockdown, but was conducted just prior to the current lockdowns in other states.

Key markers for Victoria mostly decreased over the last three months, with confidence in Victoria’s state economic growth down and home capital growth expectations also fell. Confidence in the Federal Government and the Victorian Government also declined.

Victorians reported high levels of confidence in the state’s medium-term outlook, with 62 per cent of respondents expressing confidence that COVID-19 impacts on their business will improve over the next three months.

The Property Council’s Victorian Executive Director Danni Hunter said Victoria’s results showed there was a level of confidence in our post-pandemic recovery despite the past 12 months.

“It would be an understatement to say Victoria has experienced a tough time during the COVID-19 pandemic but on a positive note Victorian businesses remain confident for their future in the coming months”, Ms Hunter said.

“With other states now in the grips of their own lockdowns, it’s a sharp reminder that the pandemic is not over yet. However, there are greenshoots already developing across Australia, and with the vaccine rollout slowly gaining pace there is light at the end of the tunnel for the Victorian community.

“But we can’t bank on our confidence alone. The Victorian Government needs to take action now to help harness this confidence. It must partner with the business community to help get the CBD thriving again and avoid further lockdowns.”

The survey also found housing supply and affordability had remained the primary concern across Australia, with property taxes rising from third to second most pressing concern. The increase in property taxes as a critical issue followed the Victorian Government’s announcement of increases to stamp duty and land tax, and the introduction of a windfall gain tax, in the 2021 Budget.

“It is vital the Victorian Government works with industry to increase housing supply, maintain downward pressure on affordability and lock in Victorian jobs in the sector,” said Ms Hunter. “It’s new and increased taxes on property will only drive up the cost of housing and must be repealed if the Victorian Government wants to get the state back on track”.

The ANZ/Property Council industry survey for the June quarter was taken immediately prior to  the state health order and consequent border changes around the nation.

 

Index

Quarterly Result

Quarterly Change

Ranking (1 to 7)

Confidence Index

DOWN

124 to 122

7th

State Economic Growth

DOWN

13.2 to 5.8

7th

State Govt Performance

DOWN

-0.5 to -23.3

7th

Debt Finance Availability

DOWN

8.9 to 5.1

6th

House Capital Growth

DOWN

53.6 to 47.5

7th

Office Capital Growth

UP

-27.6 to -26.1

7th

Forward Work Schedules

DOWN

35.2 to 31.9

7th

Staffing Levels

UP

18.6 to 19.8

6th

 

To view select ANZ/Property Council Survey historical data series, visit the Property Council’s Data Room

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

Media contacts:  Eric Allilomou M: 0400 403 730 E: [email protected]