Confidence dips in property sector this quarter despite steady 12 months

ACT Executive Director of the Property Council, Adina Cirson has said that new ANZ/Property Council survey results reveal a dip in confidence expectations for the coming quarter. This follow a strong performance by the Capital in the preceding 12 months.

“This survey shows an amber light after long periods of green lights. While Canberra still performs better than all states other than NSW, the latest survey is sending some mixed signals and they should be watched closely,” Ms Cirson said.

According to the latest ANZ/Property Council Survey – the leading business sentiment index – the ACT recorded the third highest increase, up another 5 points in the 12 months to September 2017 – which year on year has continued to improve  - up from just 94 points in 2012.

 

ANZ/Property Council Survey – September quarterly results – Australian Capital Territory

“These quarterly results whilst showing that the ACT remains in a good position at the beginning the new financial year, indicators such as forward work schedule expectations have dampened this quarter dropping well below the March – June expectation high which had us leading all others.

“We have maintained our big spike in staffing level expectations first seen in June, with the ACT ahead of all other jurisdictions, meaning business is feeling more confident about locking into labour costs. This demonstrates the sector is confident about hiring more staff, and therefore confident that their financial position will continue to improve,” Ms Cirson said.

The Survey also revealed levelling confidence in housing, office, retirement living and retail growth expectations, but a positive turn for industrial, and a huge increase in capital values for hotel, tourism in leisure - now leading the nations growth expectations together with hotel sales. Foreign investment residential and commercial sales are also up between 2 and 5 percent in the ACT, although this quarter saw slight dips in foreign retail and industrial sales.

“Availability of debt finance, continues to drop further into the negative across all jurisdictions, except South Australia, although concerns of an interest rate increase have dropped across the board.

The Territory has seen a further drop in confidence for Federal and Territory Governments in planning and managing growth.

“Of some concern is that we have again seen a significant decrease in national economic growth expectations, whilst still in the positive, are in stark contrast to the expectations for our territory economic growth expectations – ahead of all other state economic growth expectations.

“However nationally we continue to see construction in the retirement sector continue to rise above all others, and a 7.4 percent increase in construction activity expected in the office market, despite retail heading south recording a negative result of 7.3 percent,” Ms Cirson concluded.

To find out more about the ANZ/Property Council Survey and our Supporting Sponsor RCP, visit www.propertycouncil.com.au/confidence

Media contact:  Adina Cirson  |E acirson@propertycouncil.com.au