Reactivating our CBD vital to NSW economic recovery

The latest ANZ/Property Council Survey has shown NSW property industry confidence has lifted for the December 2020 quarter reflecting an improved outlook across property sectors due to the the easing of COVID restrictions over the last few months.

NSW property industry confidence has increased by 8 index points from 84 over the quarter which is slightly above the national average of 82.  A score of 100 is considered neutral.

“The last six months have been challenging for all sectors of the property industry with impacts still ongoing, so it is good to see that there has been a further uplift in confidence,” Acting Property Council NSW Executive Director, Belinda Ngo said today.

“Although there are more positive signs for forward work schedules and state and national growth expectations, the outlook is more negative when it comes to debt finance availability expectations and this could be a real roadblock to recovery for the wider industry, especially in the residential sector.

Index

Overall Context

Quarterly Result

Quarterly Change

Comment

Confidence Index

 

NEGATIVE

UP

76 to 84

Highest confidence level since March 2020’s result of 124 index points

State Economic Growth

 

NEGATIVE

UP

-57.7 to -40.2

Despite an increase over the quarter, sentiment remains in negative territory

State Govt Performance

 

POSITIVE

UP

28.4 to 30.6

Well above the national average of 4.2 index points

Debt Finance Availability

 

NEGATIVE

DOWN

-14.8 to -15.3

The lowest sentiment in the nation

House Capital Growth

 

NEGATIVE

UP

-42.1 to -32.8

Second lowest sentiment in the nation, only ahead of Victoria

Forward Work Schedules

 

NEUTRAL

UP

-7.1 to 0.0

Above the national average of

-4.7 index points

Staffing Levels

 

NEGATIVE

UP

-12.1 to -4.4

Staffing levels now above the national average of -5.3 index points

 

“Overall, there is support and positivity in relation to the work by the NSW Government to keep construction going and focus on a strong future pipeline of work throughout the pandemic to keep people in jobs and support the economic recovery of NSW.  

“It is encouraging to see the NSW Government leading the way in improving the planning system and driving the economic recovery of the state.

“However we would also like to see this good work continue in getting people back into our CBDs and into offices to reactivate our city centres and support local businesses.

“There has been some great work done already with the Summer Business Summit being held to bring together ideas on how to create vital economic activity within our city centres, and we would like to see this continue with strong strategies put in place to revive our CBD economies and boost productivity right across the state both directly and indirectly.”

 

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Media contact: Michelle Guido | M 0437 315 198 |   E mguido@propertycouncil.com.au