WA property recovery a work in progress
The recovery in the WA property sector looks like it will take a little longer to fully materialise after the recent surge in confidence slipped a little, according to the latest survey of business confidence in the WA property sector.
Business confidence in the WA property sector dropped 4 index points to 114 in the September quarter 2017, following a 20 point climb to its highest level since 2013 in the previous quarter, according to data from the ANZ/Property Council Survey.
“There is no doubt that a recovery in the WA property industry is underway but it is patchy and there will be ups and downs in sales and price expectations for a little longer,” Property Council WA Executive Director Lino Iacomella said.
“The main take-outs from the latest survey are that the WA property industry does not expect the State economy to experience strong growth in the short-term and that we are less likely to see property values rise in WA over the next few months.
“The sectors under most pressure continue to be the housing, commercial office and industrial sectors.
“The sectors with growth expectations are retail and retirement living.
“These results coincide with the release of the 2016 census figures, which show the importance of population growth for the property industry in WA over the last five years.
“The latest population estimates for WA show a big slow-down in growth in 2017, which is very disturbing. This is contributing to the patchy and drawn out recovery of the property industry in WA.
“Keeping WA growing must be the priority for government policy formulation. Streamlining the infrastructure system in WA and progressing reforms to the state’s strata title laws are two examples of growth initiatives that need to be prioritised,” Mr Iacomella said.
Media contact: Lino Iacomella | M 0417 501 974 | E [email protected]
To find out more about the ANZ/Property Council Survey and our Supporting Sponsor RCP, visit www.propertycouncil.com.au/confidence