Confidence in Western Australia’s property industry has jumped nine index points following the Federal election and is now the second highest of any state or territory.
The ANZ/Property Council Survey for the September 2019 quarter shows confidence in WA hitting 134 index points, up from 125 in the June 2019 quarter. The uptick was mirrored in every state and territory, except for the ACT, with the WA result sitting above the national average (128) and being trumped only by South Australia.
Property Council WA Executive Director Sandra Brewer said this was good news for a sector the state relies on to create jobs and economic activity.
“Across the board, the results from this survey paint an encouraging picture of the outlook for property in Western Australia,” Ms Brewer said.
“Our run of four quarters of declining confidence has come to an end, and all the key indicators are now pointing back in the right direction.
“In addition to the welcome rise in confidence, we have also seen a marked turnaround in expectations for national economic growth, moving from negative territory to be firmly back on positive ground.
“Falling expectations of Western Australian state economic growth in the June (2019) quarter have also rebounded, shooting up to now be the highest of any jurisdiction for the year ahead.
“This is likely driven in large by a complete reversal in industry’s expectations of the availability of debt finance for the year ahead. In WA, this swung from a June (2019) quarter net balance of -11.6 index points to be positive 11 in the September (2019) index, with similar results seen around the country.
“These promising signs have seen a commensurate small increase in forward work schedule expectations which, if realised, will translate into more jobs for Western Australians.
“In the residential sector, we’ve seen a much more moderate, but nonetheless important shift in expectations for capital growth in house prices in the coming 12 months, which have also returned to positive territory.
“This outlook, indicating the potential for growth, is reinforced by the RBA’s recent interest rate cut together with APRA’s proposed review of lending criteria.
“Confidence in the WA Government has climbed to the highest level in six years suggesting prudent financial management of the State Budget and progress on significant infrastructure investments, are having an impact.
“The challenge now is to sustain and build on these gains with good policies and effective delivery.
“We want to work collaboratively with government to capitalise on this positive shift and the many benefits a thriving property industry can deliver to Western Australian communities.”
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