Canberra’s property industry confidence has had a big jump, despite doubt surrounding global economic conditions, higher interest rates and the prospect of further increases, according to the latest ANZ/Property Council survey.
Acting ACT Executive Director Dr Adele Lausberg said confidence increased by 15 index points from 120 to 135 – the highest across the country and well above the Australian average of 119.
“This is a great result for Canberrans which confirms people in the ACT are not only resilient, but are confident and optimistic regarding the property industry,” Dr Adele Lausberg said.
“Canberra is a fantastic place to live, work and play which is backed up by the highest expectations for economic growth and the highest expectations for forward work schedules.
“Staffing level expectations more than doubled from 11 to 25, the largest increase in the country, reflecting positive signs around future migration rates increasing.”
Dr Lausberg said over the next 12 months respondents believe capitalisation rates in their sector will increase in both prime and secondary assets.
“Prime rates are expected to increase moderately (just under the Australian average) whilst secondary are expected to grow significantly – the highest expectations in the country,” she said.
ANZ Senior Economist Felicity Emmett said higher interest rates and the prospect of further increases are taking their toll on property sentiment.
“Firms remain quite negative about the broader economic outlook, but are still relatively upbeat about their own prospects,” Ms Emmett said.
“Rate hikes, both actual and prospective, access to finance, and rapidly rising costs are all headwinds for sentiment.”
Media contact: Aidan Green | E [email protected]