Industry sentiment holds steady

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Confidence within Queensland’s property industry remains positive in the face of uncertainty around macroeconomic conditions, according to the latest ANZ/Property Council Survey.

Property industry sentiment in Queensland dropped marginally from 119 index points in the June quarter, to 113 index points in September – down from 140 index points in March. A score of 100 points is considered neutral.

Queensland Executive Director of the Property Council, Jen Williams, said the recent findings reflected a level of subdued optimism, despite the issues currently facing the property industry in Queensland.

“External factors including inflation, interest rates and recessionary fears in Europe and the US are weighing on sentiment,” Ms Williams said.

“So too, labour shortages and the ongoing challenge of sourcing building materials, continue to impact the delivery of works in progress.

“And then locally, housing availability is an acute pain being felt across Queensland that is hampering the ability of the industry to accommodate those workers who are needed to help meet demand.

“This concern came through clearly in the results, with housing supply and affordability nominated as the most critical issue the Queensland Government must address.

“These factors combined have led to a significant drop in forward work schedule expectations for the industry.

“Despite the marginal drop in overall sentiment, the long-term prospects for Queensland remain solid, with opportunities stemming from the Brisbane 2032 Olympics and strong population growth continuing to drive demand.

“Earlier this month, the Property Council released research showing 220,000 people from Sydney and Melbourne are likely to move to Queensland over the next five years.

“With availability of housing in Queensland already at crisis point, it will be more important than ever for Government and industry to work together to bring forward development activity to meet current levels of unmet demand, as well as to plan for future levels of population growth.

“As such, the Property Council warmly welcomed the announcement of a Queensland Housing Summit to be held on 20 October, as an opportunity for all stakeholders to come together with solutions to boost activity and address the housing crisis.”

ENDS

ANZ/Property Council Survey Chartbook available here.