Confidence low nationally but a stable story for WA property industry
Business confidence in the WA property sector remains stable, increasing by 1 basis point in the past 12 months, whilst confidence shifts down across the rest of the country.
The ANZ/Property Council Survey index for WA now sits at 130, down from 139 in the September 2018 quarter. However, despite this recent dip WA remains the only State to see an increase in the last 12 months.
The overall national confidence index saw a drop of 15 basis points over the year to December 2018.
“Confidence has fallen across the country, particularly in NSW and VIC which are now experiencing a draw back after significant growth,” Property Council WA Executive Director Sandra Brewer said.
“Despite the national downward trend, the WA market has remained steady and respondents forecast continued growth for the next 12 months.”
“Confidence in State Government performance has fallen, which reflects an industry that is waiting for more certainty and clarity around the status of large scale-infrastructure projects and fundamental policy reviews.”
“It is now critical for the State Government to continue pressing forward with reforms like the introduction of Infrastructure WA and the review of WA Planning system which will support city-wide projects like METRONET and stimulate growth in the State.”
“The latest survey reveals strong growth expectations for office and industrial sectors in WA. This is encouraging because it indicates that the resource sector is improving, and the supporting sectors are positioning themselves to respond to that increase in demand.”
“The survey results reconfirm that the WA economy is bumping along the bottom of the market cycle. We are seeing positive signs of a market in recovery and business conditions are improving, but at a gradual pace compared to the outlook."
Media contact: Sandra Brewer | P 9426 1200 | E [email protected]