Foreign investment drives property confidence higher

Foreign investment drives property confidence higherForeign investment in the Victorian property industry has driven business sentiment higher in the December 2014 quarter.The latest ANZ/Property Council Survey shows Victorian respondents’ sentiment increased from 131 on the index for the September quarter to 135 for the December quarter.The total index score for Australia was 135 for the December quarter. A score of 100 is considered neutral.The survey is the largest national business confidence survey and polled over 2,0 professionals from the property and construction industry nationally, for their forward-looking views.Property Council Victorian Executive Director, Jennifer Cunich, said Victorian sentiment had steadily risen eight points over the past twelve months as a result of improving industry confidence.”Foreign property investors are helping lift industry buoyancy by playing an active part in the local market,” said Ms Cunich. 37, 33 and 30 per cent of respondees in the residential, commercial and retail sectors reported between 10- per cent of their sales were to foreign buyers during the quarter respectively.”The importance of foreign investment in driving residential, retail and office capital growth expectations should not be underestimated. The recent influx is boosting construction activity, job creation and government tax revenue.Equally, the dominance of foreign buyers in the Victorian market shouldn’t be unnecessarily exaggerated. 33, 40 and 46 per cent of residential, commercial and retail respondees reported zero sales to foreign buyers during the quarter respectively.”The property industry is one of Victoria’s largest employers and contributors to Gross State Product.”To ensure Victoria continues to receive strong foreign investment flows in the property industry, both sides of politics should commit to making the state’s existing tax thresholds more competitive.”Key Findings:Victorian index score: increased marginally from 131 in the September quarter to 135 for the December quarter;Foreign investment: 37, 33 and 30 per cent of respondees in the residential, commercial and retail sectors reported between 10- per cent of their sales were to foreign buyers; andCapital growth expectations: The residential, commercial and retail sector increased by 7, 2 and 3 during the December quarter.Media contact:Jennifer Cunich Property Council of Australia, VIC Executive Director Ph: 0411 118 099Full results available at www.propertyoz.com.au/confidence