MEDIA RELEASE
Confidence Holds, But Industry Calls for Action on Planning, Productivity and Investment: Survey
The latest Procore / Property Council Survey reveals that while national property industry confidence remains steady, the sector is urging governments to act decisively on planning reform, productivity, and investment certainty to unlock Australia’s full economic potential.
The June quarter Confidence Index held firm at 124 – just one point below the March result – signalling continued optimism across the industry despite broader economic uncertainty. An index score of 100 is considered neutral.
However, the survey of 581 property professionals highlights rising concern over sluggish planning systems, tax and investment settings that deter local and global capital, and the urgent need for productivity-boosting reforms to accelerate housing and infrastructure delivery.
Property Council Chief Executive Mike Zorbas said the results show property is a resilient sector, but investors need clearer signals from government.
“The property industry is holding its nerve, but we need governments to get serious about tax and investment settings that will help Australian businesses attract overseas capital partners for the assets our cities need.
“At a time when State governments have run out of money, taxes on foreign investment deter patient institutional investment that we need to build our cities.
“Industry concerns about tax reform surged to 20 per cent since last quarter – the highest level since June 2020 – reflecting mounting frustration with outdated tax settings that deter investment and constrain the supply of new homes, offices and industrial property assets.
“This survey also reminds us that planning reform is the single biggest productivity lever available to governments. We must streamline planning and environmental approvals, reduce red tape, and enable faster delivery of housing and infrastructure”, Mr Zorbas said.
Key findings from the June 2025 survey include:
- Housing supply and affordability remains the top concern for both federal and state governments, reinforcing the urgency of delivery-focused reform.
- Forward work expectations declined across every state except Queensland – signalling potential softening in future project pipelines, especially in Victoria and the ACT.
- Capital growth expectations remain positive in residential, industrial, retirement living and hotel sectors, while sentiment for office and retail assets remains mixed.
- Debt finance availability and interest rate expectations improved across all jurisdictions bar WA, suggesting more favourable investment conditions ahead.
- Staffing expectations rose in most markets, reflecting ongoing demand for skilled labour, despite pockets of softening in some regions.
- Government performance confidence remains stubbornly low, with only South Australia recording positive sentiment federally, and just South Australia and Queensland recording positive scores at the state level.
Mr Zorbas said the data underscores the need for a nationally coordinated effort to unlock housing and infrastructure supply at scale.
“This is a capital-intensive industry, and Australia will need to continue attracting institutional investment to build the next generation of housing, workplaces and community infrastructure,” he said.
“That means streamlining investment pathways and scrapping counterproductive taxes on foreign capital if we want to stay competitive,” Mr Zorbas said.
“The survey shows that confidence is regional, with Queensland and South Australia leading the pack. This underscores the need to be agile and responsive to local market conditions. The divergence highlights the importance of real-time insights and data-driven decision-making to stay ahead in a multi-speed economy,” said Andrew Rampton, Industry Transformation Director, Procore APAC.
The Procore / Property Council Survey commenced in 2011. It is now one of Australia’s largest surveys of sentiment in the property industry – our largest industry and employer which supports 1.4 million jobs.
The Q2 2025 survey was conducted online between 3 June and 18 June 2025 and included 581 respondents. Respondents are drawn from across the property industry, including property developers, managers and agents and service providers.
ENDS
Media: Andrew Parkinson | 0404 615 596 | [email protected]