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Property industry confidence remains robust

  • July 06, 2021

Property industry confidence levels remained close to recent record highs, according to the latest quarterly ANZ/Property Council Survey taken just before the last set of COVID-19 outbreaks.

 

Three key takeaways:

  • National industry confidence, according to the survey taken just before the last lockdowns affecting several capital cities, is sitting at 139 points. This is down three points but still at its third highest level on record, where a score of 100 is considered neutral.
  • 56% of national respondents believe the impacts of the coronavirus outbreak on their business will improve over the next three months, 39% expect no change and just 5% think impacts will get worse.
  • Housing supply and affordability top the critical issues lists for both federal and state governments for the second quarter in a row.

 

The results of the latest quarterly ANZ/Property Council Survey underscores why confidence across an industry that employs 1.4 million Australians is critical Australia’s economic rebound.

ANZ senior economist, Felicity Emmett, says the survey results, taken prior to the last outbreaks of COVID-19, showed industry confidence was “buoyant”.

“A strong outlook for economic growth across the country, a very large pipeline of residential construction work and solid expectations for property prices are all supporting this confidence,” Emmett says.

“While new COVID restrictions are concerning, previous brief lockdowns have shown how resilient the economy and labour market is, suggesting that the outlook for the property sector is likely to remain very positive.”

Property Council group executive of policy and advocacy, Mike Zorbas, says the industry continues to do the “heavy lifting” for the economy.

“Housing supply and affordability have solidified as the key areas that industry participants want federal and state governments to focus on in recovery.”

Zorbas says policymakers must look for new ways to stimulate housing supply, especially in the apartment market, to support new job-creating opportunities.

“Poor supply is the enemy of housing affordability. We need to be investing in the right infrastructure, fixing housing affordability, reforming archaic planning systems, phasing out stamp duty, getting zoning right and investing in social housing.”

The survey gathered feedback from 874 between 7 and 23 June – immediately prior to the state health order and consequent border changes around the nation.

Confidence in the federal government’s role in delivering policies that encourage jobs and economic growth has decreased over the quarter. National sentiment decreased from 42 to 33 index points.

Zorbas notes the “strong need” for National Cabinet to develop a roadmap for entry into and exit from ‘lockdowns’ and to accelerate purpose-built quarantine arrangements.

“Property industry confidence is a powerful boost for national economic activity but we must remain vigilant about keeping our position in the first rank of international competitiveness and as the first choice for international investment,” Zorbas says.

View select ANZ/Property Council Survey historical data series over in the Property Council’s Data Room or find out more about our Supporting Sponsor RCP.