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ACT property sector confidence dips under lockdown

The latest ANZ/Property Council industry sentiment survey has shown ACT property industry confidence has fallen for the September 2021 quarter recording the largest drop in the country as result of the lockdowns of the ACT, NSW and Victoria.   

Overall property industry confidence has dropped by 18 index points from 140 down to 122, with many of the indicators second lowest to Victoria, despite the comparatively shorter period of lockdown in the Territory compared to other jurisdictions.  

“That being said, we remain in the positive on some fronts, a much different story to the negative position we found ourselves in late last year.  A score of 100 is considered neutral. The national confidence index was 130, only dipping nine index points from the previous quarter.

“Our members however did record the most significant concerns in the county around the current impact of one of the hardest lockdowns in the country, which included a complete shutdown of the construction industry,” said Adina Cirson, the Property Council’s ACT Executive Director.

“What we are worried about is the cumulative impact of the lockdown off the back of last year, so we will need to carefully monitor confidence across the sector looking ahead, and members are not feeling confident in neither the federal or Territory governments ability to manage the impacts being felt here.

“Forward work schedule expectations and willingness to increase staffing levels for the next 12 months remained in the positive, but are sitting lowest in the country behind Victoria. Access to debt and interest rate expectations remain in the positive with some slippage.

“Obviously some sectors have been hit harder than others, with hotels and tourism being hit the hardest, followed by retail and commercial office markets, all slipping into the negatives – highlighting the need for ongoing support for these sectors well after the lockdown ends next month.  

“The shining light here is that housing growth expectations remain high second only after Queensland, and strong results in both the industrial and retirement living sectors, reflecting high demand and rising prices.  Housing, property taxes and planning remain as the most critical issues for the state and territory governments to address.

“Our industry continues to a critical part of the COVID-19 recovery phase, and ensuring we have a solid pipeline of construction projects is essential,” Ms Cirson concluded.

ANZ/Property Council Survey – September quarterly results – Australian Capital Territory

Index

Overall Context

Quarterly Result

Quarterly Change

Comment

Confidence Index

POSITIVE

DOWN

140 to 122

Whilst positive, largest drop of 18 points in the country

State Economic Growth

POSITIVE

DOWN

21.3 to 8.6

Slightly less optimistic sentiment recorded over the quarter

State Govt Performance

NEGATIVE

UP

-16.0 to -3.7

Sentiment increased despite ACT lockdowns

Forward Work Schedules

POSITIVE

DOWN

47.8 to 27.1

Sentiment dropped but remains in positive territory this quarter

Staffing Levels

POSITIVE

DOWN

21.2 to 19.7

Dropped from highest sentiment in the nation into negative territory

House Capital Growth

POSITIVE

SAME

66.9 to 66.9

Sentiment remained unchanged over the quarter

Office Capital Growth

NEGATIVE

DOWN

9.3 to -10.9

Sentiment dropped into negative territory

Retail Capital Growth

NEGATIVE

DOWN

-9.1 to -22.5

Sentiment drops further into negative territory

Industrial Capital Growth

POSITIVE

DOWN

25.0 to 20.0

Sentiment dropped but remains in positive territory

Hotel Capital Growth

NEGATIVE

DOWN

-16.3 to -35.6

Sentiment drops further into negative territory

Retirement Living Capital Growth

POSITIVE

UP

20.0 to 35.2

Sentiment increased closer to pre-COVID levels

 

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

To find out more about the ANZ/Property Council Survey and our Supporting Sponsor RCP, click here.

Media contact:  Adina Cirson |M 0429 579 972 |E [email protected]u