Residential construction activity eases
Despite a sharp fall in residential construction activity expectations, business sentiment for the Victorian property industry has held steady during the December 2015 quarter.
The latest ANZ/Property Council Survey shows Victorian respondents’ sentiment remained unchanged from the previous quarter at 134 on the index for the December 2015 quarter.
The total index score for Australia was steady at 130 for the December quarter. A score of 100 is considered neutral.
The ANZ/Property Council Survey is the nation’s leading measure of confidence in the property industry and polled over 2,200 respondents for their forward-looking views.
Property Council Victorian Executive Director, Jennifer Cunich, said while confidence levels were holding steady for now, early indicators of a softening in residential construction activity expectations should give all policymakers pause.
“Confidence in Victoria’s property industry remains firmly in positive territory and our forward staffing expectations are the highest in the country,” said Ms Cunich.
“Residential construction is a major driver of economic activity and its health is inextricably linked to the vitality of the Victorian economy.
“The fall in expectations for residential construction activity this quarter needs to be closely monitored by investors and policy makers.
“The State Government should consider the implications of these results carefully as they review future policy reform in the residential sector.
“All current and future policy settings should be reviewed in light of a potential slowdown in residential construction.
“Residential development is one of the strongest drivers of the Victorian economy. Now is not the time to be taking risks with additional regulation and property taxes.”
Fast Facts:
- Victorian index score: held steady at 134 from the September 2015 quarter to the December 2015 quarter;
- Residential construction activity expectations: experienced a decline of 18 points nationally in the December 2015 quarter; and
- Staffing level expectations: experienced an eight point increase to become the highest in the country.
Media contact: Asher Judah | M 0499 841 715 | E [email protected]