Rising uncertainty dogs industry

Victorian business sentiment has held steady despite rising concerns about debt financing and residential construction activity during the September 2016 quarter.

The latest ANZ/Property Council Survey shows Victorian respondents’ sentiment remained stable at 137 on the index for the September 2016 quarter.

The total index score for Australia dropped slightly to 128 for the September quarter. A score of 100 is considered neutral.

The ANZ/Property Council Survey is the nation’s leading measure of confidence in the property industry and polled almost 1,600 respondents for their forward-looking views.

Property Council Victorian Acting Executive Director, Asher Judah, said the Victorian property industry is becoming increasingly apprehensive about the future.

“Ongoing economic uncertainty coupled with tightening credit conditions are causing angst in an industry already grappling with unwelcomed changes in government tax and planning policy,” said Mr Judah.

 “The latest ANZ/Property Council Survey reveals Victorian residential construction activity expectations have fallen 32.5 points over the past two years with a 10.1 point decline occurring in the September 2016 quarter.

“This easing continues against the backdrop of steadying capital growth expectations after a very strong run,” said Mr Judah.

“The State Government should be mindful of these subtle changes in sentiment and outlook as they consider their final positions on Plan Melbourne, C270 Central City Built Form Controls and Apartment Design Guidelines.

“After the doubling and tripling of Victoria’s foreign investor taxes, the last thing our industry needs is another unexpected shock.”

 

Fast Facts:

  • Victorian index score: held steady at 137 from the June 2016 quarter to the September 2016 quarter;
  • Capital growth expectations: capital growth expectations from the June 2016 to September 2016 quarter for housing, office and industrial each reported a stabilisation in sentiment from 15.3 to 4.8, 11.1 to 5.2 and 7.8 to 5.2 respectively; and
  • Residential construction activity expectations: Victoria continued its easing trend with a decline of 10.1 points in the September 2016 quarter.

Media contact:  Asher Judah |  E ajudah@propertycouncil.com.au