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Property industry remains resilient

  • October 05, 2021

Property industry confidence levels may have fallen by nine index points over the last quarter, but staffing and forward work expectations remain resilient, according to the latest ANZ / Property Council Survey.

 

  Three key takeaways:

  • National industry confidence was at 130 points for the September quarter, when a score of 100 is considered neutral.
  • The results are considerably higher than levels recorded the same time last year, when national industry confidence was at a historically low 82 index points.
  • Property Council chief executive Ken Morrison says the property sector is poised to lead Australia’s economic recovery, hailing the results as “remarkably resilient”.

 

“The property industry clearly has faith in Australia’s capacity to rebound and recover,” Morrison says.

“As we transition through the stages of the National Plan, industry confidence will be strengthened by clarity and consistency in government policies as we reactivate our major cities.”

National forward work schedule expectations decreased from 48 to 39 index points over the September 2021 quarter. South Australia was the only market not to record a decrease, with an increase of nine index points from the previous quarter.

National staffing level expectations decreased by one index point, although Western Australia and South Australia recorded increases in staffing level expectations.

National economic growth expectations decreased by 21 index points to 13 over the September 2021 quarter.

But 57 per cent of survey respondents believe the impacts of the coronavirus outbreak on their business will improve over the next three months; 31 per cent of respondents believe there will be no change and just 12 per cent were pessimistic.

“While lockdowns have clearly impacted confidence, particularly in the hotel, tourism and office sectors, the overall outlook remains surprisingly positive,” says ANZ senior economist, Felicity Emmett.

“Expectations of a solid economic rebound are underpinning sentiment, helped by a large pipeline of residential construction and strong gains in house prices.”

Confidence in the federal government’s role in delivering policies that encourage jobs and economic growth has decreased by 20 index points over the quarter. Over the September 2021 quarter, national sentiment decreased from 33 to 12 index points.

Respondents in all markets believe their respective state governments are doing a good job planning and managing growth, with the exception of Victoria, ACT and Queensland.

View ANZ/Property Council Survey historical data series in the Property Council’s Data Room and find out more about our supporting sponsor RCP.