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