Confidence in the property industry is on the up, but there is a huge disparity between the expectations between real estate insiders in the resource states and their non-mining counterparts.
Overall, the latest Property Council of Australia-ANZ Property Industry Confidence Survey paints a refreshingly optimistic picture of the future of Australia’s property market, noting that sentiment among the 2,300 professionals from the property and construction sector that took part in the survey has increased this quarter.
The nationwide index score for confidence in the property industry now sits at 113, having lifted from 107 in the March quarter, thanks to a less uncertain outlook for the global economy. A score of 100 is considered to be ‘neutral’.
“Overall the industry is more confident as acute concerns over global economic conditions ease,” said Property Council chief executive, Peter Verwer. “Respondents are feeling less buffeted than in previous quarters, where the storm in commodity prices, global economic insecurity and domestic political uncertainty contributed to negative sentiment.”
He noted, however, that confidence levels vary vastly between regions, with resource-rich states pulling ahead while red flags are being raised in Victoria and Tasmania.
“More than half the quantifiable lift in sentiment is attributed to three states – Western Australia, the Northern Territory and Queensland – despite the fact these states account for less than a third of the nation’s population,” he said.
Confidence was highest in the Northern Territory, having risen from a score of 145 in the March quarter to 159 in the current June quarter. Western Australia recorded the second highest confidence index score (144), followed by Queensland (127).
Tasmania recorded the lowest score of 73, having dropped 12 points from an already low March result of 85. Victoria recorded the second lowest index score of 96, having dropped one point since the March survey.
“While Victoria only declined one point on the index over the period, it is concerning that confidence in Australia’s second-largest property market should remain flat while sentiment in most other states increases,” said Verwer.
State by state index scores:
|
June quarter |
March quarter |
|
|
NSW |
113 |
105 |
|
VIC |
96 |
97 |
|
Qld |
127 |
113 |
|
SA |
112 |
105 |
|
WA |
144 |
127 |
|
Tas |
73 |
85 |
|
NT |
159 |
145 |
|
ACT |
101 |
94 |
Source: Property Council of Australia-ANZ Property Industry Confidence Survey
Are the resource states your hot tip for 2012? Have your say on our property investment forum.
More stories:
Show me the money: Australia’s richest and poorest states revealed
