WA geared for a bounce back

 

Business confidence in the WA property sector has climbed to its highest level since 2014, according to the ANZ/Property Council Survey for the June quarter 2017, which revealed a 20-percentage point increase in the confidence index.

These results point to an economic turnaround in WA led by proposed investments by non-mining businesses.

The improvement in industry confidence is due to expectations that improved national economic growth will flow to WA, and a lift in forward work schedules and staffing numbers.  A raft of major projects is proposed in WA, including shopping centre expansions, hotels and new infrastructure such as the Forrestfield-Airport Link.

WA is also coming out on top when it comes to housing affordability which has seen eastern states and international investors look to WA for a bargain.

Commodity prices have risen from last year’s low which has given mining companies greater confidence in future investments in the State which will boost employment and have a flow on effect for non-mining investment.

There is no doubt the State election had a significant influence over business sentiment as industry can now confidently plan future works alongside the state government.

However, we must not be complacent, WA still lags behind most other States in economic growth and we still have one of the highest unemployment rates in the country.

WA needs effective economic reforms to take advantage of the opportunities currently presenting themselves and to regain a competitive edge over the other states.

This includes quick passage of proposed strata title reform legislation in State parliament and a firm red-tape reduction program.  A good example of this is introducing full private certification of building permit applications for major projects.