The Property Council of Australia has reported that confidence across the property sector has lifted to the highest level in four years, surging by nine points over the quarter, according to the latest ANZ/Property Council Survey.
Nationwide confidence rose from 132 for the September 2017 quarter to 141 in December. A score of 100 is considered neutral.
“This is a strong result,” says the Property Council’s chief executive, Ken Morrison.
Daniel Gradwell, chief economist with ANZ, says the survey provides further evidence that most of the mining-related adjustment is behind us.
“Western Australian firms are now expecting economic growth in the state to rise over the next 12 months – the first positive survey in over three years,” he says.
Gradwell says the construction outlook is strong nationally and will support business investment.
“The construction outlook for the aged care, industrial, and office segments is the strongest since this survey began,” he says.
This positive outlook is consistent with recent building approvals data, which are now “sitting at the highest levels on record,” Gradwell adds.
Sentiment in the housing market generally improved, Gradwell explains. While the outlook is “much softer” than during the earlier peak, “solid outlooks” for construction activity, prices, and labour “all suggest that the slowdown in the housing market will continue to be a gradual cooling, rather than a sharp decline”.
Source: Property Council of Australia