According to the latest ANZ/Property Council industry survey, confidence in Australia’s property sector has remained historically high despite a less optimistic prognosis for the economy.
The Confidence Index fell 5 points nationwide in the March quarter, although it remained in positive territory (137), bolstered by confidence about the economy. A Confidence Index score of 100 is considered neutral.
Despite the slight drop in confidence, Property Council of Australia Chief Executive Ken Morrison stated that higher levels of confidence throughout the industry are beneficial to the entire economy.
“The industry’s forward work expectations have continued to lift this quarter and so have their staffing level expectations,” Mr Morrison said.
“This means that the property sector – which employs more Australians than any other sector – is set to hire more people and deliver more work, something both sides of politics should welcome as we begin the federal election campaign.
“Given the extent of turbulence the sector has suffered over the previous quarter this is a resilient outcome that stays above the historic average.”
The study, conducted between March 15 and 30, found that future work expectations rose in every state and territory except the ACT throughout the quarter, with the highest increases observed in SA (40 to 48 index points) and WA (45 to 53). Expectations for job creation grew significantly in Victoria (19 to 35), QLD (20 to 32) and SA (30 to 42). A score of 0 is regarded as neutral.
Over 60 per cent of respondents nationally believed that the effects of the pandemic will lessen over the next three months.
According to ANZ Senior Economist Felicity Emmett (pictured), commercial property confidence rose in the third quarter, boosted by improved mood in the industrial, retail, and tourism sectors, while residential property confidence declined somewhat but remained higher than pre-Covid.
“Industrial property sentiment continues to power ahead, with the strong construction outlook backed up by the sharp lift in building approvals over the last few years,” she said.
“The opening of the international borders has buoyed tourism sentiment, lifting it to its highest level since 2018.
“While retail and office property sentiment remain in positive territory, they face headwinds, particularly office property, where sentiment declined in the March survey.”
With only a few weeks until the election, poll respondents identified some of the most critical issues affecting the federal administration.
“Housing supply and affordability topped the list of major issues to be addressed by a federal government over the next 12 months, with its strongest response in the history of the survey,” Mr Morrison said.
“Research from the Property Council of Australia recently revealed almost 70 per cent of voters fear younger people will never be able to buy a home in this country, with 90 per cent of those trying to enter the market indicating it was the most important issue in deciding their vote in the May federal election.
“Also on the agenda for our members is ESG, with cities and infrastructure delivery, alongside economic management, remaining key issues.”
To access the full chartbook and to find out more about the ANZ/Property Council Survey and our Supporting Sponsor, RCP, click here.
ANZ-Property Council, Summary indices, Australian average:
|
Confidence* |
Staffing Level Expectations# |
Forward Work Schedule# |
|
|
March 21 |
142 |
29 |
53 |
|
June 21 |
139 |
23 |
48 |
|
Sep 21 |
130 |
23 |
39 |
|
Dec 21 |
142 |
29 |
49 |
|
March 22 |
137 |
34 |
53 |
* 100=neutral # 0=neutral