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NSW property industry confidence down again

The latest ANZ/Property Council Survey has shown NSW property industry confidence has dropped to one of the lowest in the nation.

NSW property industry confidence has dropped one index point from 120 to 119 over the quarter and has fallen 22 index points over the 12 months to March 2019. A score of 100 is considered neutral.

Lower forward work schedule expectations and house capital growth expectations have dragged down sentiment contributing to lower results across the board.

“Sentiment is down and with a state and federal election just around the corner, I don’t think we will see it rebound in the short term despite stronger results in some sectors,” Property Council NSW Executive Director Jane Fitzgerald said today.

Index

Overall Context

Quarterly Result

Quarterly Change

Comment

Confidence Index

POSITIVE

DOWN

120 to 119

A fall of one index point and the second lowest across the country

State Economic Growth

NEGATIVE

DOWN

-2 to -3

Down one index points and the lowest level in six years

State Govt Performance

NEGATIVE

DOWN

9 to -2

Confidence moved into negative territory for the first time in almost five years

Debt Finance Availability

NEGATIVE

DOWN

-28 to -34

Lowest result on record and in line with national trends

House Capital Growth

NEGATIVE

STEADY

Steady at -60

Result remained steady and well below the national result of -23

Forward Work Schedules

POSITIVE

DOWN

32 to 30

Despite remaining in positive territory, it is now well below the historical average of 47

Staffing Levels

POSITIVE

UP

20 to 23

An increase over the quarter following a nine-point fall in the previous quarter

 

“The industry is facing a lot of uncertainty and change, particularly over the past twelve months. We have seen the introduction of Special Infrastructure Contributions, increasing 7.11s, the changing of key policies such as the Medium Density Housing Code, the updating of LEPs, and the review of approaches to planning in areas such as Ryde – that’s a lot of change for an industry.

“With a flat residential market, there is a real risk that this moving feast of policy changes will have a detrimental effect on economic growth and jobs. The 400,000 people who work in the property industry in NSW rely on a healthy industry for their economic wellbeing.  

“Good and steady leadership is required on issues of planning and managing our growth to ensure declining industry sentiment and a flat residential market do not weigh down our NSW overall economic growth.”

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: William Power  |  M  0429 210 982 |   E  wpower@propertycouncil.com.au