Falling property sector confidence calls for cooperation between Government and industry

The latest ANZ/Property Council Survey reveals that the Victorian property industry’s confidence levels have fallen for the third consecutive quarter, with a decline of three index points in the results for the March 2019 quarter.

The Property Council’s Victorian Executive Director, Cressida Wall, said that the confidence figures reflect a softening in market conditions, but also a preparedness to build on the certainty provided by November’s State Election.

“At a time when the property industry has never been more vital to the Victorian economy – it employs one in four workers and is responsible for delivering housing for a growing population – it also faces significant challenges.”

“Victoria has delivered the Andrews Government an overwhelming majority, and a clear mandate.

“A number of challenges exist to the property industry due to policy settings and market conditions. Now it is critical for government to partner with industry to successfully navigate these headwinds,” said Ms Wall.

Expectations for price growth in the residential sector have slowed, dropping from -33.5 index points to -43.8 for the March quarter.

“The future availability of credit is also of concern to industry, with tighter lending practices creating long-term risks for the supply and affordability of Victorian housing,” noted Ms Wall.

Forward work and staffing level expectations have also reduced, in line with the adjustment to an index score of 123 index points for Victorian respondents’ sentiment.

The ANZ/Property Council Survey is the nation’s leading measure of confidence in the property industry and polled 1,043 respondents for their forward-looking views.

The total index score for Australia contracted from 126 to 123 index points over the March 2019 quarter. A score of 100 is considered neutral.

To view select ANZ/Property Council Survey historical data series, visit the
Property Council’s Data Room

To find out more about the ANZ/Property Council Survey and our Support Sponsor RCP, visit
www.propertycouncil.com.au/confidence

Fast Facts (Victoria):

• Victorian index score: dropped to 123 index points ” a reduction of three points.
• Forward work schedulesdecreased from 38 to 32 index points over the March quarter.
• Staffing level expectations also declined, from 23 to 20 index points.

Victoria	Overall Context	Quarterly Result	Index Quarterly Change	Comment
Confidence Index	POSITIVE	DOWN	126 to 123	A fall of 3 points, in line with national average
State Economic Growth	POSITIVE	DOWN	7.5 to 2.8	Industry remains cautiously optimistic in Victoria
State Govt Performance	NEGATIVE	NEUTRAL	-0.7 to -0.7	Stable sector satisfaction with Government
Debt Finance Availability	NEGATIVE	POSITIVE	-29.7 to -20.0	Improvement from previous quarter
House Capital Growth	NEGATIVE	DOWN	-33.5 to -43.8	Decline in sector confidence
Forward Work Schedules	POSITIVE	DOWN	38.3 to 31.7	Slightly below national average
Staffing Levels	POSITIVE	DOWN	23.5 to 20.4	Slightly above national average

Media contact: Cressida Wall | M 0415 831 603 | E [email protected]