Industry confidence still high says leading survey

Industry confidence still high, says leading surveyStrong foreign investor activity is boosting confidence and bringing new housing supply to the market, according to the latest ANZ/Property Council Survey.The nation’s leading measure of industry confidence has surveyed more than 18 respondents across Australia, finding that national confidence has dipped one point over the previous quarter from 132 to 131 but remains buoyant. A score of 100 is considered neutral.Confidence in NSW increased to its highest level on record; meanwhile confidence in WA decreased to its lowest point since the survey began.Forward work plans and staffing levels remain positive and are at 146 and 120 index points respectively.According to chief executive of the Property Council, Ken Morrison, the underlying confidence in the industry’s own work and staffing expectations is “good news for the rest of the economy, which is relying on property to drive growth”.Survey respondents also indicated that foreign investment nationally accounts for 22 per cent of new residential property sales on average, and this has remained constant over the previous two quarters.Morrison says that the survey results underscore the fundamental importance of foreign investment in making new housing stock available for Australians. “The only way to improve housing affordability is to get more housing on the ground earlier, and foreign investment is a key ingredient in making this happen,” Morrison explains.”Foreign investors don’t reduce the availability of housing for Australians, they increase it.”Every newly constructed home that a foreign investor purchases enables up to four other homes to be built.”ANZ Chief Economist Warren Hogan says that the property sector continues to provide a green shoot for the broader Australian economic outlook.”Low interest rates, increasing home prices and solid population gains look to be buoying expectations of increased housing construction activity in the coming year,” Hogan says.”Solid foreign investment in new housing has also continued to drive a strong upturn in housing construction.”