Property confidence levels reach new high

“Given the economic significance of the Australian property industry, the results from this survey are cause for optimism,” said Ken Morrison, CEO of the Property Council of Australia.

“Getting the policy settings right for the property industry such as better planning, cutting red tape and providing policy certainty don’t cost the budget bottom line but does deliver a real boost to confidence which in turn drives investment, expenditure and employment.

“We’re seeing confidence across the industry at elevated levels in all states and territories, with South Australia, Queensland and the ACT the stand-outs in terms of improvement this quarter. Expectations around economic growth in South Australia and Queensland have especially strengthened this quarter.”

Sentiment recorded specifically for capital growth expectations for houses over the next 12 months was strongest in the ACT, followed by South Australia, and then Western Australia and Queensland, and then Victoria. NSW was the only state or territory to have a negative capital growth expectation, while the industry populations of Tasmania and the Northern Territory were too small to be recorded.

Overall, Daniel Gradwell, senior economist at ANZ, said that the results indicate optimism in property as each state and territory saw improvement in sentiment.

“The convergence across the country continues. We have previously highlighted the trend improvements in Western Australia and Queensland, but South Australia has been a quiet achiever,” Mr Gradwell said.

“The outlook for the housing sector is improving. Expected construction activity has slowly picked up, and a large backlog of work will underpin activity this year. Price expectations are also stabilising in positive territory, with the exception of New South Wales.”