Returning Confidence Positive Sign for Property Industry
The latest survey of business sentiment across the WA property industry has revealed the first significant increase in confidence after three years of steady decline.
The ANZ/Property Council Survey index for WA moved up 10 points from 94 to 104 in the third quarter of 2016. This is the first improvement in confidence in 3 years, however, still the lowest across the country. The Australia-wide property confidence index saw a slight increase from 128 up to 130 this quarter.
“The latest results show that the property sector is stabilising and is an early sign of an economic turn-around for the industry,” Property Council WA Executive director Lino Iacomella said.
Most survey respondents in WA continued to rate the retail and retirement living sectors as having the best prospects, as well as a significant increase in optimism in the hotels sector, reflecting the announcement of 13 new hotels or refurbishments in Perth CBD in coming years.
“It is reassuring to see confidence starting to return to the WA property industry and, although the numbers are still low, they show that the market could be stabilising after a tough stretch,” Property Council WA Executive director Lino Iacomella said.
“Although the latest results are positive, the market is still fragile and Government needs to be proactive to support broad-based economic activity that will drive our economy which will create jobs and build strong communities.”
“The Government’s inaction to introduce meaningful reform, including the urgent introduction of strata title reform, fairer property taxes and better provisioning of infrastructure like public transport to support urban infill and keep WA growing, has previously driven down confidence.”
“Ahead of the State election in March 2017, all parties need to focus on an economic reform agenda which will continue to build confidence in WA’s property industry and keep WA growing.”
To find out more about the ANZ/Property Council Survey and our Supporting Sponsor RCP, visit www.propertycouncil.com.au/confidence or download the Chartbook below.