PROPERTY INDUSTRY NEEDS CONFIDENCE SHOT IN THE ARM

The latest ANZ/Property Council of Australia industry confidence survey findings highlight the importance of economic stimulus measures and a clear pathway for office workers to return to the CBD as the state emerges from its COVID-19 lockdown.

Property industry confidence in Victoria is the lowest in the nation at 64 index points for the December 2020 quarter – below the national average of 82 index points. A score of 100 is considered neutral.Victoria’s historical average is 123 index points.

The survey showed that Victorian respondents were the most pessimistic in the country about the impact of COVID-19 on their businesses over the next three months, with 27 per cent of indicating the impact would get worse while 49 per cent expected an improvement.

The Property Council’s Victorian Executive Director, Cressida Wall said industry stimulus measures and a clear pathway for office workers to return to the Melbourne CBD are vital to restoring sentiment and investor confidence in the State.

“Times are tough for many businesses, but Victorians are resilient,” said Ms Wall.

“Business needs certainty to be able to operate with confidence. The State Government’s roadmap to recovery supported construction sector confidence; the next step is a clear plan to get workers back in offices and back in the CBD.”

The Property Council has also called on the Government to outline its eagerly awaited industry stimulus package.

Housing construction represents a powerful economic multiplier and Government stimulus to carry the sector through this tough period will create jobs and bring forward investment.

“For every $1 million spent on residential construction roughly $3 million of activity is generated across the broader economy.

“Government investment in the property industry is an investment in Victoria and an economic win for all Victorians.”

Index

Overall Context

Quarterly Result

Quarterly Change

Comment

Confidence Index

NEGATIVE

DOWN

71 to 64

A decease of 7 index points over the quarter, lower than the national average

State Economic Growth

NEGATIVE

DOWN

-56.9 to -70.1

Lowest sentiment in the nation

State Govt Performance

NEGATIVE

DOWN

15.0 to -24.5

Lowest sentiment recording since June 2012

Debt Finance Availability

NEGATIVE

UP

-15.5 to -13.5

The result is in line with national trends

House Capital Growth

NEGATIVE

DOWN

-37.6 to -52.0

Lowest growth expectation in the nation

Forward Work Schedules

NEGATIVE

DOWN

-15.4 to -23.5

Lowest expectation in the nation

Staffing Levels

NEGATIVE

DOWN

-12.2 to -12.9

Lowest expectation in the nation

 

To view select ANZ/Property Council Survey historical data series, visit the Property Council’s Data Room

To find out more about the ANZ/Property Council Survey and our Support Sponsor RCP, visit

www.propertycouncil.com.au/confidence

 

Media contact: Emily Young p: 0475 161 328 e: eyoung@propertycouncil.com.au