Tentative confidence remains in NSW property industry despite broad concerns over housing, Property Council survey shows

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Thursday 11 April 2024 

MEDIA RELEASE

Tentative confidence in NSW property industry despite broad housing concerns, Property Council survey shows

The latest Procore/Property Council survey tells a story of tentative optimism for the NSW property industry, despite broad and continuing concerns around housing supply.  

The Confidence Index in NSW increased 12 points from last quarter to 123 index points. A score of 100 in the Confidence Index is considered neutral. 

However, all eyes in the state are on housing. An overwhelming number of respondents from NSW said housing supply was the most critical issue for both the federal and state Government at 44 per cent and 40 per cent, respectively. 

“Considering this survey targeted a full cross-section of property professionals – from private investors to developers to service providers and both public and private institutions – this is an unmistakable sign that concerns around housing have reached every corner of our industry,” said Katie Stevenson, Property Council of Australia NSW Executive Director. 

“This should be a clear warning to the NSW Government that we are watching, and we are urging them to use every tool at their disposal to get on top of this housing supply and affordability crisis. 

“We are all united in our determination to up the game on housing delivery.” 

Despite the narrative of an overwhelming shared concern, survey respondents were increasingly positive about an uptick in business. Staffing level expectations almost doubled since last quarter, with 15.8 per cent of respondents expecting to grow their personnel over the next 12 months. 

An even higher number of respondents – 40.6 per cent – expected their forward work schedules to grow, compared to 24.6 per cent in the last reporting period. This is the first time this metric has met or exceeded the historical average since September 2022. 

“It is pleasing the see a growing confidence in the property sector, even despite construction activity for the residential sector remaining far below where it needs to be,” Ms Stevenson said. 

“If we are to get on the right track, the government needs to remove as many barriers to completion as possible. Only then will we reach a place where confidence in achieving our Housing Accord targets is warranted.” 

ENDS 

Kirsty Sier | 0435 075 085 | [email protected]