Increased confidence a positive sign for the NSW property industry

The latest ANZ/Property Council Survey has shown NSW property industry confidence has improved, demonstrating a more positive outlook for the property industry in NSW.

NSW property industry confidence has increased 17 index points from 109 to 126 over the quarter and has fallen 8 index points over the 12 months to September 2019. A score of 100 is considered neutral.

Following the outcomes of both the NSW and Federal elections improved certainty and a more solid outlook for growth despite the slowing of the residential market has led to an increase in confidence across the sector.

Improved capital growth expectations in NSW for housing, office and industrial sectors have been supported by lower interest rates and a possible relaxing of APRA guidance on loan repayment obligations matched with renewed political certainty.

“Over the last 12 months, there is no doubt political uncertainty at a state and federal level matched with a slowing residential market has had a large impact on industry sentiment within NSW,” Property Council NSW Executive Director Jane Fitzgerald said.

“A strong NSW Budget 2019-20 delivered by the NSW Government with a record investment in infrastructure and solid outlook for growth despite reduced stamp duty revenue should help to drive confidence across the property industry.

“With a clearer direction ahead of us, now is the time to take a long hard look at the cumulative impact of the existing regime of property fees, taxes and charges across state and local government which is a major impediment to housing supply and affordability across NSW.

“We want to see clear leadership from the NSW Government and commitment to a long-term strategy to fix the planning system and taking on some of the tough reforms that will ensure our state economy is not completely reliant on fluctuations in the property market.

“A renewed policy focus is not the only answer to further strengthening industry sentiment; however it sets a strong foundation to encourage further investment and boost potential jobs growth and we look forward to continuing working with the NSW Government on this.”

The ANZ/Property Council Survey commenced in 2011. It is now one of Australia’s largest surveys of sentiment in the property industry – our largest industry and employer which supports 1.4 million jobs.

Respondents are drawn from across the property industry, including property developers, managers and agents and service providers.

The Q3 2019 survey was conducted online between 28 May and 14 June 2019 and included 980 respondents.

Source: Property Council of Australia