Levelling industry sentiment needs budget boost
The latest ANZ Property Council survey shows NSW has been drawn back to the pack as industry sentiment levels out and other states grow in confidence.
The NSW property industry confidence index has risen slightly to 141 index points, up from 140 points last quarter. In the 12 months to June 2018, sentiment has dropped four index points.
Housing capital growth expectations continue to fall, now down to negative 12 index points indicating a softening market due to tighter debt financing and lower price growth.
“We are seeing a levelling of industry sentiment in NSW and other states have caught up; we are no longer the clear leader. NSW is coming off a very high peak and consumer driven sectors such as residential and retail are contracting,” Property Council NSW Executive
Director Jane Fitzgerald said today.
“Hotel and Industrial sector capital growth expectations are leading the nation and these sectors, along with retirement, are now where we are seeing higher expectations of growth.”
Retail capital growth expectation is recorded at negative 3 index points and NSW is the only state with negative capital growth expectations for the sector.
“With slowing capital growth expectations in some sectors, there are flow on effects. Expected staffing levels has been dropping for the past four quarters and is a worrying trend given the property industry is one of the State’s biggest employers,” Ms Fitzgerald said.
“The NSW Government performance index is also at its lowest point since June 2014. The release and implementation of key planning reforms over the next six months including important housing codes and a strong State Budget should contribute to halting this slide.
“Now that we are in the midst of an election year, the upcoming Budget will be important to send a message to the industry. As other east coast states compete for investment, a stable, open investment environment is required in NSW to ensure our good economic fortunes continue.”
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