The property industry has reported a rise in confidence, according to the latest Procore/Property Council Survey, with the confidence index climbing eight points to 116 for the December quarter.
Despite this uptick, the sector continues to grapple with housing supply issues, rising input costs, and broader economic uncertainties.
For only the fourth time since 2011, expectations for construction activity across all asset classes – ranging from residential housing to industrial and office spaces – sit below historical averages.
Housing construction expectations fell slightly below the long-term trend, while price growth forecasts surged, coming in 21 points above the historical average.
Nearly 40% of survey respondents identified housing supply and affordability as the most pressing issue for the federal government, followed by economic management (19%).
On a state level, housing supply remains the top priority for 43% of respondents, with property taxes and charges being a close second at 23%.
Property Council Chief Executive Mike Zorbas (pictured above) stressed the ongoing hurdles for housing construction, citing high costs, capacity issues, and government inefficiencies.
“High barriers to construction, high input costs and low market capacity are all showing up in weak construction expectations,” Zorbas said.
He called for urgent policy changes at all government levels to meet the ambitious national target of 1.2 million new homes by 2029.
Confidence levels vary significantly across states:
Chris Skelton, Procore’s general manager at APAC, underscored the role of technology in overcoming industry challenges.
“Australia’s housing crisis remains a significant societal challenge...,” Skelton said. “Now more than ever, access to data-driven construction management technology is fundamental to help the property industry reduce risk, drive operational efficiency, and build together.”
Forward work expectations remain positive at 26 on the index, and staffing levels sit at 8, both above neutral but below historical averages. These results reflect cautious optimism in the industry as stakeholders navigate economic and structural barriers to meet housing and infrastructure demands.
The survey highlighted a critical need for collaboration across government, industry, and technology partners to address supply issues and ensure the property sector can deliver on national housing goals.
Follow this link to read the Property Council report.
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