New South Wales has been drawn back to the pack as industry sentiment levels out and other states grow in confidence, according to the latest ANZ/Property Council survey.
The NSW property industry confidence index rose slightly to 141 index points, up from 140 index points in the last quarter. However, in the 12 months to June 2018, sentiment has dropped four index points.
Housing capital growth expectations continue to decline, sinking to negative 12 index points, indicating a softening market due to tighter debt financing and lower price growth.
“We are seeing a levelling of industry sentiment in NSW and other states have caught up; we are no longer the clear leader. NSW is coming off a very high peak and consumer-driven sectors such as residential and retail are contracting,” said Jane Fitzgerald, NSW executive director for the Property Council of Australia. “Hotel and Industrial sector capital growth expectations are leading the nation and these sectors, along with retirement, are now where we are seeing higher expectations of growth.”
Fitzgerald added that the NSW government’s performance index is at its lowest point since June 2014.
“The release and implementation of key planning reforms over the next six months including important housing codes and a strong state budget should contribute to halting this slide,” she said.
“Now that we are in the midst of an election year, the upcoming budget will be important to send a message to the industry. As other east coast states compete for investment, a stable, open investment environment is required in NSW to ensure our good economic fortunes continue.”
