Confidence in the Australian property sector has remained resolute, despite uncertain macroeconomic conditions, according to the latest survey of Property Council members, with the confidence index slipping just one point to 113 index points.
A score of 100 in the confidence Index is considered neutral.
Mike Zorbas (pictured above), Property Council of Australia CEO, said the industry remained widely optimistic despite pressures from interest rates and inflation.
“Confidence remains positive within the property industry, especially within individual business,” Zorbas said. “Construction activity expectations are generally positive across all asset classes, with the exception of the retail and office sectors, where they slightly dipped into the negative territory.
“Expectations regarding construction activity in the retirement living sector have hit their highest mark since the December quarter of 2021. Likewise, expectations for residential construction are at their peak in over a year, and industrial construction expectations have reached their highest level since the September quarter of 2022.”
The survey of 696 property professionals during the September quarter indicated that companies continued to have faith in their work schedules and staffing capacities.
Across states and territories, forward work expectations remained positive, with an average index score of 31 across the country, down compared to the historical average of 36.4. The ACT and Western Australia posted the strongest figures, at 56 and 46.2, respectively. A score of 0 is considered neutral.
Future staffing expectations across the country remained positive at 12 index points, just below the historical average of 16.6, but declined in all markets except in Western Australia and the ACT.
As the survey respondents’ anticipations regarding future interest rate hikes have moderated, expectations regarding house price growth have increased further, hitting 36.8 points – the highest level since the 2021 December quarter.
Nationally, housing supply and affordability was identified as a top concern for the Australian government, selected by 41% of the survey respondents. At the state level, 43% of respondents pinpointed it as the most crucial issue for state governments, the Property Council survey showed.
In a media release, Zorbas pointed to deficiencies in government policies and structures as what have led the nation to this juncture.
“Addressing the lack of investment in planning systems that fail to adequately address the essential needs of all Australians is a must,” he said. “While governments have tinkered around the edges to provide housing supply in recent months, this survey shows that the property industry is still concerned about the lack of housing supply.”
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