Major projects sustain WA property despite confidence slump

Major projects sustain WA property despite confidence slumpBusiness confidence in the WA property sector has slumped to its lowest level in four years, but forward work expectations remain positive.The ANZ/Property Council Survey index for WA has dropped to 105 from 113 for the June quarter of 2015. WA’s confidence is down 23 index points over the past 12 months.The Australia-wide property confidence index has remained consistent, dropping by only a single point to 131 in the June quarter.Property Council WA Executive Director Joe Lenzo said, “The drop in confidence has been seen in both Western Australia and Queensland, the nation’s major mining states. In contrast, other states like New South Wales are at an all-time high.””The major contributor to the lack of confidence amongst property businesses in WA is the negative outlook for office capital growth, which has been in a steady decline.”Weakening expectations for industrial capital growth and, to a lesser extent, housing prices have also hurt confidence in the property sector.”Thankfully there is a strong pipeline of housing and commercial construction, particularly in the CBD around major projects like Elizabeth Quay, the Link and Perth Stadium, which is maintaining employment in the property sector.”It is critical that WA continues to invest in major projects in the property sector and infrastructure projects to support development and keep WA growing.”Media contact: Joe Lenzo | M 0419 044 768 | E [email protected]