Confidence boost for market
Confidence in the property industry has sky-rocketed in the wake of the federal election, a new survey has shown.
Industry confidence has leapt 30 index points since last year, according to the Property Industry Confidence Index prepared by the Property Council and ANZ.
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“Positive expectations about house price growth and significant expected increases in construction activity in New South Wales and Queensland are driving a strong upturn in confidence for the property industry,” Property Council CEO Nathan Paine said.
This result comes despite frail economic conditions nationwide.
“While the near-term outlook for the Australian economy remains soft as it adjusts to the wind-back of mining investment, stronger sentiment provides a positive outlook for the property market,” ANZ chief economist Warren Hogan said.
He said increased consumer confidence could be attributed to low interest rates, a rebound in the housing market activity and continued offshore investor demand.
However, in the wider economy, retail spending has stalled and employment has fallen slightly over the past quarter.
Queensland and New South Wales topped the nation for an optimistic market.
By contrast, confidence in the Western Australia market has dropped as the resources boom draws to an end.
The ACT also retains a pessimistic outlook, driven by fears of public service reductions.
The poll was taken in the wake of the federal election, which may have buoyed results, according to Mr Paine.
“This poll captures the market response to a change of government and the increase in certainty and stability from the federal government,” Mr Paine said.