Property Sector Remains Positive but Macro conditions cause decline in sentiment
The latest ANZ/Property Council survey showed confidence within Australia’s property industry remaining firm in the face of uncertain macroeconomic conditions. The survey revealed the businesses are confident in their own work schedule and staffing levels, with the overall Confidence increasing by 1 Index point nationally to 119 Index points in the September quarter.
The results found that confidence levels in all states and territories remained positive, with sentiment in the ACT (135), WA (131), and NSW (121) higher than the national average. A score of 100 is neutral.
Over the quarter, staffing level projections were strong in all states and territories, with the national average sitting at 23, above the historical average of 16.6. Future work expectations also remained positive recorded a national index of 37 but saw declines in all states aside from NSW and the ACT.
COVID’s effects linger, with the virus expecting to have the greatest impact on the office sector, followed by the hotel, tourism, and leisure. However, the residential, retail, and industrial sectors all anticipate the effects of COVID-19 to ease over the coming months.
Property Council of Australia Chief Executive Ken Morrison said the results reveal companies have confidence in their own operations, but external factors such as interest rates and construction costs are weighing on sentiment.
“On the one hand, work pipelines and employment expectations look strong, while on the other hand interest rates, inflation, construction costs, skill shortages and recessionary fears in Europe and the US give real cause for concern,” Mr Morrison said.