Thursday 06 July 2023
ANZ Property Council survey results show housing supply and affordability as top concern for ACT
Housing supply and affordability has been flagged as the number one concern for the property industry in the latest ANZ/Property Council survey.
Property Council’s ACT and Capital Region Executive Director Shane Martin said it was no surprise housing supply and affordability was the number one issue facing the ACT for 52 per cent of respondents.
“As more people choose to move to the ACT it’s critical we have an increase in our housing supply and the right mix of stock for these people to live,” Mr Martin said.
“The supply side is a looming issue to address as house capital growth expectations increased in the ACT with it moving from -3.0 to 19.8 in this survey.
“Greater focus needs to be had on delivering reform that can improve the operational climate if we are to see an improvement in confidence levels in the next quarter.
“Industry is committed to being part of the housing supply and affordability solution and will continue to engage with government to create greater certainty and deliver more positive outcomes in this regard.”
Mr Martin said despite harsh macro and micro economic conditions, the ACT recorded several heightened confidence index points across several areas in the survey.
“This shows the ACT is growing rapidly as more people are choosing to make Canberra home, driving productivity and economic growth,” he said.
“This has led towards a confidence index increase here in the ACT moving from 108 points to 117 higher than NSW.
“The planning reform undertaken by the ACT Government will be crucial in tackling this issue going forward and will need to ensure all the right processes are in place to move towards a planning system that is outcomes focused.”
ANZ Senior Economist Adelaide Timbrell said rising interest rates and ongoing pricing pressures are still dampening confidence.
“While developer finance expectations and interest rate expectations improved, they are still very pessimistic,” Ms Timbrell said.
“We read the slight improvement in expectations as a product of nearing the end of the rate hiking cycle, rather than a fundamental change in expectations of policy from developers.
We forecast that the RBA will raise the cash rate to a peak of 4.6 per cent in 2023, and we are unlikely to see a decline in the cash rate until late 2024. “The price of materials will continue to be a challenge.
48 per cent of respondents in the June quarter expected construction materials to rise over the next year by at least five per cent, up from 45 per cent in March. Fewer than 10 per cent of respondents expect construction materials to fall over the next year.
“The general trend is that demand is not an issue for developers, but the costs to fund, source materials and find labour for developments are still difficult.
Considerable backlogs in construction will elongate the resilience of forward orders as the economy slows,” she said
Key figures
Confidence from the Property Industry increased from 108 – 117
Staffing level expectations increased from 16.6 – 18.7
State economic growth expectations went from 0 to 5.3
House capital growth expectations increased in the ACT with it moving from -3.0 to 19.8
ENDS
Media contact: Aidan Green | 04910 300 28 | [email protected]