Property growth expectations in NSW hits record highs
The quarterly Property Council/ANZ sentiment survey for March 2021 released today has shown capital growth expectations for the industrial and residential sectors are at record highs in NSW according to Jane Fitzgerald, NSW Executive Director of the Property Council.
Overall property industry sentiment in NSW bounced from 123 points in the December 2020 quarter, to 145 index points in the March 2021 quarter. A score of 100 is considered neutral.
“Importantly, commercial office capital growth expectations are also showing a strong recovery, a positive move for the State’s economy,” Ms Fitzgerald said.
“Residential capital growth expectations are off the charts – accelerating concerns about housing affordability in NSW, especially for Sydney, with capital growth expectations recording their highest rating of 72, more than double that of last quarter (December 2020 30.1).”
Ms Fitzgerald said industrial property has been the brightest shining star throughout the pandemic, with Australians relying more on goods and services being delivered directly to their homes.
“The survey shows industrial capital growth over the coming 12 months in NSW is sitting at 47.1 on the index, up 11.5 points from the December 2020 quarter,” Ms Fitzgerald said.
Ms Fitzgerald said that despite the slow return of office workers to CBDs, the commercial office capital growth expectations index shows a strong recovery, up from -45.2 points in December 2020 to -14.6 in March 2021, a rise of 30.6 points.
“Whilst there is clearly a long way to go, this turnaround in confidence is reassuring.
“Residential housing has risen to a record high rating of 72 in March 2021, more than double the rating of December 2020. This is excellent news for anyone who already owns a home but means that the State government needs a renewed focus on housing supply if we are to stave off locking the next generation out of home ownership.
“This quarter’s survey also shows how concerned the industry is about housing supply and affordability with this now the key issue for NSW state government to address,” concluded Ms Fitzgerald.
Full results of the ANZ/Property Council survey are attached.
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