The New South Wales property industry has lost its throne to Victoria as the industry with the strongest outlook, according to the ANZ/Property Council Survey for the March quarter.
NSW property industry confidence has dropped seven index points, from 147 to 140, over the March quarter, and nine index points in the 12 months to March 2018. This stands in sharp contrast to 2017 when a significant strengthening was noted in the industry’s confidence, growing from 139 index points in the September quarter to 147 in the December quarter.
The capital value expectation for the residential sector is at its lowest point since September 2012, and expected construction activity is also at its lowest point since the survey’s inception. Both drops are attributed to the lowered overall industry confidence.
“The NSW industry is still strong, with a healthy outlook for capital value expectations in both the office and industrial sectors, and staff hiring expectations; yet we must look at what can be done to ensure our industry continues to deliver for NSW,” said Jane Fitzgerald, NSW executive director for the Property Council of Australia.
“NSW is currently a fluid policy environment with many strategic planning documents, infrastructure financing approaches, and local planning strategies to be finalised in 2018; these need to be completed and implemented by the NSW Government to ensure strong industry confidence.
“We need to see policies that will strengthen the housing pipeline and enable housing where we most need it; a softening residential sector will have flow on effects to housing affordability, employment, and government revenue.
“These latest results show that our industry’s strong position must not be taken for granted and transparency and consistency must be provided through strong policy leadership.”
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