Business sentiment steady in property industry

Business sentiment steady in property industryThe latest ANZ/Property Council Survey shows that business sentiment remains steady and in positive territory in Australia’s property sector. The September quarter results show confidence levels nationally in Australia’s largest industry remain unchanged from the previous quarter at 131 points, where 100 is considered neutral, according to the almost 1,800 respondents.Tasmania, Victoria, the Australian Capital Territory, Queensland and South Australia all recorded an upward shift in sentiment on the previous quarter. At the other end of the spectrum Western Australia and the Northern Territory both recorded the lowest confidence levels since the survey began, despite WA showing strong forward work schedule and staffing expectations.Property Council Chief Executive Ken Morrison said the survey confirms that the property industry is providing a solid foundation of activity for Australia’s economy, even in states heavily impacted by the mining slowdown.”All the indicators point to a steady property market injecting strength into the national economy, creating jobs and boosting the supply of new housing,” Mr Morrison said.”Unsurprisingly, NSW continues to lead the pack with strong results in Victoria, Queensland, South Australia, ACT and Tasmania and drops in Western Australia and Northern Territory.”Expectations of housing capital growth remain positive, with more mixed results in non-residential sectors. “While we continue to set new records for residential building approvals we still face a significant supply challenge. Maintaining strong activity levels in the property industry is vital to the broader economy, meaning governments need to step up and address the barriers to growth.”Most importantly we need to see action on tax and planning reform. South Australia is leading the way with its decision to remove commercial conveyancing stamp duty. Stamp duty inhibits economic activity and is one of our most inefficient taxes – a relic of our colonial past that needs to be abolished Australia-wide once and for all.”ANZ Chief Economist Warren Hogan said the September quarter ANZ/Property Council Survey reflects an optimistic outlook for property sector capital gains and construction.”Australia’s economic growth rate remains below-trend, with the residential property sector one of the few patches of strength,” Mr Hogan said.”Supported by solid underlying housing market fundamentals and expectations of continued low interest rates, the property sector has maintained a positive outlook for residential property prices and housing construction.”Sentiment remained divergent across commercial property sectors and states/territories, with commercial property expectations reflecting the positive impact of solid investor demand for high-grade properties in the major capital cities on capital growth expectations.”However in the broader economy, consumer spending and business investment remains weighed down by the threat of global economic instability, stirred in recent weeks by both the Greek crisis and China’s equity market sell-off.Media contact: Matt Cross| M 0402 155 372 | E [email protected]