Optimistic outlook for property sector

Confidence levels remain steady and in positive territory, with an optimistic outlook for property sector capital gains and construction recorded in the latest ANZ/Property Council Survey.

The quarterly survey polled almost 1800 property industry professionals across all Australian states and territories on their forward-looking views regarding the business and political environment, the economy, employment intentions and other factors.

The September quarter results found confidence levels remain unchanged from the previous quarter, at 131 points. A score of 100 is considered neutral.

 

Tasmania, Victoria, the Australian Capital Territory, Queensland and South Australia all recorded upward shifts in sentiment.

Western Australia and the Northern Territory, however, both recorded the lowest confidence levels since the survey commenced, despite WA showing strong forward work schedule and staffing expectations.

According to Property Council chief executive Ken Morrison, the survey confirms that the property industry is providing a solid foundation of activity for Australia’s economy, even in states heavily affected by the mining slowdown.

“All the indicators point to a steady property market injecting strength into the national economy, creating jobs and boosting the supply of new housing,” Morrison says.

Expectations of housing capital growth remain positive, with more mixed results in non-residential sectors.

While consumer spending and business investment is weighed down by the threat of global economic instability, ANZ Chief Economist Warren Hogan says commercial property expectations reflect the positive impact of solid investor demand for high-grade properties in capital cities.

The residential property market continues to be “supported by solid underlying housing market fundamentals and expectations of continued low interest rates,” Hogan concludes.