Uncertainty continues to drag down property industry sentiment

The latest ANZ/Property Council Survey has shown NSW property industry confidence has dropped to the lowest in the nation on the back of a period of political and policy uncertainty.

NSW property industry confidence has dropped ten index point from 119 to 109 over the quarter and has fallen 32 index points over the 12 months to June 2019. A score of 100 is considered neutral.

Lower forward work schedule expectations and staffing level expectations have dragged down construction activity sentiment, contributing to lower results across the board with only the industrial sector on an upward trend.

“Political uncertainly matched with a slowing residential market has had a big effect on industry sentiment with NSW moving from the most confident to the least in the space of the past 12 months,” Acting Property Council NSW Executive Director William Power said today.

Index

Overall Context

Quarterly Result

Quarterly Change

Comment

Confidence Index

POSITIVE

DOWN

119 to 109

A fall of ten index points to the lowest across the country

State Economic Growth

NEGATIVE

DOWN

-3 to -17

The lowest economic growth sentiment on record

State Govt Performance

POSITIVE

UP

-2 to 8

Sentiment bounced back over the quarter to positive territory

Debt Finance Availability

NEGATIVE

UP

-34 to -17

Despite a large increase over the quarter, the results is still below the national trend

House Capital Growth

NEGATIVE

DOWN

-60 to -62

Remains the lowest housing sentiment in the country

Forward Work Schedules

POSITIVE

DOWN

30 to 25

Sentiment slowed over the year to June 2019 quarter.

Staffing Levels

POSITIVE

DOWN

23 to 11

The lowest staffing result recorded across the country

 

“A state election and policy and political uncertainty will always have an impact on industry sentiment, however, matched with constrained debt financing, a slowing residential market and potential changes to Federal housing policy, we have a perfect storm.

“It is time to steady the ship. We must see clear leadership and a new focus from the recently elected State Government on issues such as planning reform and infrastructure contributions.  

“A renewed policy focus is not the only answer to strengthen industry sentiment, however, it sets a strong foundation to encourage further investment and boost potential job growth.”

To view select ANZ/Property Council Survey historical data series in the Property Council’s Data Room, click here.

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Media contact: William Power | M  0429 210 982 |   E wpower@propertycouncil.com.au