NSW property industry continues its buoyancy

NSW property industry continues its buoyancyThe NSW property industry continues to lead the nation on sentiment – and signs are strong that it will stay optimistic, according to new survey results.The ANZ/Property Council Survey is the nation’s leading measure of industry confidence, with over 2,0 respondents across Australia, including 767 in NSW.The December quarter results show the NSW confidence index sits at 147 (where 100 is neutral) – up four points from the prior quarter and above the national average of 135.”The NSW property industry has been consistently buoyant and entrenched itself as a powerhouse of the State economy,” NSW Executive Director Glenn Byres said.”We have now led the nation on confidence for three consecutive quarters and been above the national average for over two years.”This is also reflected in broader data that shows the property industry and resurgent housing market acting as a central pillar of the State’s economic renaissance.”The latest survey results also emphasise that forward work schedule and staffing level expectations in NSW surpass results in all other jurisdictions.”Plus, NSW is one of just two states with positive expectations for growth in capital values for the office market.”ANZ Senior Property Analyst, David Cannington, says the survey maintained a buoyant outlook for the NSW property market.”NSW confidence has increased sharply in the past two years to be at the highest level across all states and territories in the December quarter, reflecting the strong cyclical upswing in Sydney’s residential property market, a positive outlook for NSW residential and commercial building activity and solid foreign capital inflows to the NSW property sector.”We expect the NSW economy to continue to outperform over the next 12-18 months, largely driven by a solid pipeline of residential and commercial construction and increased state government capital expenditure on a number of large-scale infrastructure projects.”Despite easing in recent months, housing sales and house price gains in particular remain strong, driving a positive outlook in the December quarter for the NSW property sector. Moreover, commercial property capital growth expectations remain positive in all sectors, driving expectations for cap rate compression across both prime and secondary grade office property in the coming year.”Media contact:Glenn Byres Property Council of Australia, NSW Executive Director Ph: 0419 695 435David Cannington ANZ, Senior Property Analyst Ph: 03 8655 9036Full results available at www.propertyoz.com.au/confidence