Industry Confidence on the Up and Up

Confidence across the property sector has lifted to its highest level since 2014, according to the latest quarterly ANZ/Property Council Survey.

Nationwide confidence rose from 132 to 135 for the June 2017 quarter. A score of 100 is considered neutral.

The sentiment survey is the largest of its kind with more than 1,600 industry professionals participating.

While NSW continues to record the highest level of confidence of any state or territory, the latest results report a fall from 149 to 145. This was the first confidence survey conducted following the change in the state’s leadership.

The Property Council’s chief executive Ken Morrison says it is “remarkable” to see increasing confidence “despite a hardening view that interest rates will increase and that the banks will continue to tighten credit.

“National forward work schedules, staffing expectations and growth expectations are all trending up,” he adds.

For the first time in the survey’s history, housing affordability is rated as the number one economic issue.

“Nationwide, we are expecting capital growth in housing prices, with all states reporting a lift in confidence. However, the industry is concerned about the broader economic impact of rising house prices.”

All jurisdictions have also reported falls in foreign residential property sales over the past three months.

Despite tighter funding conditions and the likelihood of higher interest rates, expectations of house price growth continue to rise.

The ANZ/Property Council Survey shows an improving outlook for the property market and the Australian economy, which is broadly consistent with recent data flow.

Source: Property Council of Australia