Confidence remains steady as election looms

Confidence remains steady as election loomsThe latest ANZ Property Council Survey finds the industry outlook remains overwhelmingly positive, although a long election campaign will test this sentiment, says Property Council chief Ken Morrison.The quarterly survey is the nation’s leading measure of industry confidence, polling almost 1700 property industry professionals across Australia on their forward-looking views of the business and political environment, the economy, employment intentions and other factors. The national confidence index remains steady, and in positive territory, with a score of 131. A score of 100 is considered neutral. Sentiment has not shifted in 12 months.”Consumers and businesses have a tendency to see elections as uncertainty and often postpone decisions until after they are held. We are heading into the longest campaign in Australia’s history and this will test sentiment,” Morrison explains.Media commentary about ‘property bubbles’ is not backed up by the data, Morrison adds.”The industry is neither going through boom nor bust – instead, it is steadily meeting the continued strong demand for housing in Australia.”The forward work schedule for the industry has increased over the quarter, and staffing level expectations remain positive and steady.Confidence is underpinned by the strong economic performance of NSW and Victoria.In NSW, confidence edged up to 143, from 142 the previous quarter. Property Council NSW executive director Jane Fitzgerald warns that while confidence remains high, “policymakers need to follow through on planning reform to turbocharge housing delivery”.While Victorian respondents’ sentiment declined three points for the quarter, it still remains high at 137. Property Council Victorian deputy executive director, Asher Judah, says this easing sentiment reflects an industry in transition.”On one hand, capital growth expectations and foreign investor interest remains very strong, pointing to continued strength across the industry. Conversely, residential construction expectations are steadying after a very strong run, giving some operators reason to pause.”ANZ’s acting chief economist Richard Yetsenga says the economy is on firmer footing than expected, with unemployment at the lowest level in more than two years.But a slower housing market, weak wages growth and tentative consumer confidence remain challenges.”Importantly, the ANZ-Property Council Survey indicates a steady pipeline of work in the property sector, which is ‘doing its bit’ to offset an otherwise subdued business activity outlook.”