Property Industry Survey shows optimism returning to the NT

Property Industry Survey shows optimism returning to the NTThe latest ANZ/Property Council Survey index has revealed a slightly lower level of overall confidence; however this is buoyed by a number of positive factors.There is still confidence that forward work expectations will remain at a level higher than 12 months ago and most respondents have said they will be needing an increase in their staffing levels.Lower interest rates are expected to continue in the medium to longer term, offering confidence for developers to be able to plan a project knowing they’ll be fairly insulated from an increase in finance costs.As we noted in the January Office Market Report we are experiencing abnormally high levels of office vacancy. This is expected to continue when current projects come on line and take tenants from older buildings. Already developers are looking at alternative uses for some of these buildings and we are sure over the medium term there will be positive announcements.Retail expectations in the NT have fallen significantly and are in line with the often expressed high cost of living and consequential limits in disposable income from a high percentage of Territorians. The Government’s moves to make lower cost housing available are one important strategy in combating this dilemma.Property Council of Australia, NT Division Executive Director Mark Johnson says all indicators when looked at on a balanced view, provide optimism for the economy to continue to grow particularly on the back of a strong presence of US military personnel based permanently in the Top End.Again our respondents recorded comments in the positive about the performance of the Government, in a time when few surveys report confidence in governments it is a pleasing result.The ANZ/Property Council Survey polled more than 2,0 professionals from the property and construction sector in all states and territories for their forward-looking views.ANZ Senior Property Analyst, David Cannington, says “the Northern Territory economy continues to perform strongly, led by solid employment and wages growth and strong gains in household spending. However, the imminent peak in capital expenditure over the course of 2014 and decline thereafter is likely to present a headwind for the economy.”Media contact:Mark Johnson Property Council of Australia, NT Executive Director Ph: 0488 921 116David Cannington ANZ, Senior Property Analyst Ph: 03 8655 9036Full results available at www.propertyoz.com.au/confidence