Mild optimism for property in 2015
Business sentiment for the Victorian property sector has remained steady in the March 2015 quarter.
The latest ANZ/Property Council Survey shows Victorian respondents’ sentiment decreased marginally from 135 on the index for the December 2014 quarter to 132 for the March 2015 quarter.
The total index score for Australia was 132 for the March quarter. A score of 100 is considered neutral.
The survey is the largest national business confidence survey and polled over 1,9 professionals from the property and construction industry nationally, for their forward-looking views.
Property Council Victorian Executive Director, Jennifer Cunich, says despite a modest decline in industry sentiment, the Victorian property industry remains optimistic about 2015.
“Property businesses are signalling their plans to recruit additional staff in 2015 which is a good sign of further industry expansion,” said Ms Cunich.
Staffing level expectations index has recorded the best result in 12 months rising from 22 in the December 2014 quarter to 27 in the March 2015 quarter.
Planned residential construction activity expectations have also remained strong with the index recording the sixth consecutive quarterly result above 40. A score of 0 is considered neutral.
“The property industry is Victoria’s largest employer and the third biggest contributor to Gross State Product.
“While the private sector is optimistic about the future, it is vital that the public sector continue to build the infrastructure necessary to sustain positive industry sentiment.
“Victoria needs an infrastructure investment strategy which maximises every development opportunity. Combining residential and retail investment with its 20 level crossings programme is one area where attractive investment multipliers abound.
“If Victoria is to be the best state to invest, manage and own property, the state’s infrastructure base must set a fresh standard for the nation to follow.”
Fast Facts:
· Victorian index score: decreased marginally from 135 in the December 2014 quarter to 132 for the March 2015 quarter;
· Staffing level expectations: recorded the best result in 12 months rising from 22 in the December quarter to 27 in the March quarter; and
· Planned residential construction activity: remains strong at 52 reflecting continuing optimism
For comment:
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Jennifer Cunich |
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Full results available at www.propertyoz.com.au/confidence