Residential, industrial sectors drive property confidence in NSW

The industrial and residential sectors led the improvement in positive sentiment, with both witnessing an uptick in capital growth expectations, according to NSW executive director Jane Fitzgerald.

Residential capital growth expectations recorded its highest rating of 72 index points – more than doubling the December 2020 result of 30.1.

“This is excellent news for anyone who already owns a home but means that the state government needs a renewed focus on housing supply if we are to stave off locking the next generation out of home ownership,” Ms Fitzgerald said.

“This quarter’s survey shows how concerned the industry is about housing supply and affordability, with these now the key issue for the NSW state government to address.”

Meanwhile, the state’s expected industrial capital growth over the coming 12 months is sitting at 47.1 on the index, up 11.5 points from the December 2020 quarter.

According to Ms Fitzgerald, the pandemic has ultimately put the industrial sector at the forefront, with Australians now heavily reliant on delivered goods and services.

Looking ahead, the executive director said that she holds optimism for the commercial office sector, where growth expectations have likewise shown a strong recovery.

Despite the slow revival of CBD activity, commercial office capital growth expectations index was up from a negative 45.2 points in December 2020 to -14.6 in March 2021 – a rise of 30.6 points.

“While there is clearly a long way to go, this turnaround in confidence is reassuring,” Ms Fitzgerald concluded.

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