WA optimism a chance to capitalise on confidence
The WA property industry has the most positive outlook in Australia according to the ANZ/Property Council survey for the December 2020 quarter.
Overall sentiment increased to 107 index points for the quarter, a 25 point increase on the previous period.
This was the largest quarterly increase in sentiment for any state or territory and is well above the national level of 82 index points, which increased from 76 points. A score of 100 points is considered neutral.
Property Council WA Executive Director Sandra Brewer said the results, which were gathered from property industry participants between 7 and 23 September, reflected WA’s strong health and economic position due to its management of COVID-19.
“WA is the only state or territory across the nation with an overall positive level of sentiment,” Ms Brewer said.
“This is a great reflection on industry and government working hand in hand to ensure our economy, which relies heavily on property for employment and economic activity, has been able to withstand difficult times over the past six months.”
WA also led the nation for capital growth expectations for residential housing, forward work schedule requirements over the next 12 months and state economic growth expectations, with all recording positive results. This signaled that the WA industry was responding well to residential stimulus and other actions taken by the State and Federal Governments to keep the economy ticking.
“The increase in house capital growth and forward work expectations matches the conversations we’re having with members on the ground, who say they are expecting significant demand for their products and services over the next 12 months,” Ms Brewer added.
“The establishment of the State Development Assessment Unit is a factor here, as it gives development proponents a quicker pathway to have job creating, shovel ready projects a chance of proceeding more quickly.”
Additionally, WA office capital growth expectations improved, going from the most negative in the country to the least negative, explained by a gradual improvement in return to office work for many CBD-based employees.
There were also slight improvements in capital growth expectations across retail, industrial and hotel property. Despite recording slight improvements, retail and hotel property growth expectations remain in negative territory, while industrial expectations edged into positive territory.
The State and Federal Governments enjoyed high performance ratings in WA, although both dipped from their record high results in September. Economic management and the delivery of cities and infrastructure remained key issues the Federal Government needed to manage, while property taxes and charges remained high on the radar for the State Government.
Ms Brewer said these encouraging results indicated there was interest in investing in WA and that governments should not waste the opportunity.
“WA has cemented itself as a safe and attractive place to invest in because of it’s natural advantages and management of the pandemic,” Ms Brewer explained.
“This has only been strengthened by the burst of enthusiasm brought by the recently announced Perth City Deal, so it’s important governments leverage that game-changing project for Perth’s CBD.
“With five months until the State Election, it’s critical that governments don’t miss this unique opportunity to attract more capital and new business into WA while the confidence in our market supports it.”
Media contact: Nick Warland | M (08) 9426 1203 | E NWarland@propertycouncil.com.au
The ANZ/Property Council Survey started in 2011. It is now one of Australia’s largest surveys of sentiment in the property industry – our largest industry and employer which supports 1.4 million jobs. Respondents are drawn from across the property industry, including property developers, managers and agents and service providers. The survey was conducted online between September 7 and 23, including 857 respondents – 94 of them primarily operating in WA.
To view select ANZ/Property Council Survey historical data series, visit the Property Council’s Data Room.
To find our more about the ANZ/Property Council Survey and our support sponsor RCP, visit www.propertycouncil.com.au/confidence