WA property industry still adjusting: confidence survey
Confidence in the WA property industry has slipped again as the market comes to grips with an economy struggling to recalibrate after the mining boom, according to a leading survey of business confidence in the property industry.
The ANZ/Property Council Survey index for WA moved from 99 to 95 for the third quarter of 2016. The drop continues the downward spiral in confidence which has fallen since mid-2013. This is the lowest score since the survey’s inception.
The Australia-wide property confidence index saw a slight dip from 131 down to 128 this quarter.
Confidence in growth expectations dropped in all sectors, however most survey respondents in WA continued to rate the retail and retirement living sectors as having the best prospects.
“In the WA marketplace the key factors impacting the industry include: high rates of office vacancies, reduced demand for industrial property aligned to the resources sector and a slowing rate of population growth which is shaving demand for housing”, said Property Council WA Executive Director Lino Iacomella.
“The Government’s inaction to introduce meaningful reform, including the urgent introduction of strata title reform, fairer property taxes and better provisioning of infrastructure like public transport to support urban infill and keep WA growing, has driven down confidence.”
“Other states, such as South Australia have introduced visionary reforms, such as abolishing Commercial Stamp Duty and to extend Stamp Duty concessions on off-the-plan apartment purchases. These reforms are helping to create jobs and promote much needed growth in the state.”
“Although we expect a recovery in industry confidence in WA at some point, the timing will be affected by the state’s strategic response on key reforms”, said Mr Iacomella.
Media contact: Lino Iacomella | E [email protected]