Cautious optimism advised as sentiment improves in Qld
Property confidence levels have surged in Queensland, but experts remain cautious as they await the repercussions of Brisbane’s most recent lockdown.
The latest ANZ/Property Council Survey has revealed an increase in confidence levels in Queensland’s property sector over the March 2021 quarter, rising to 144 index points from the previous quarter’s 124. This result surpassed the national average of 142 points. A score of 100 is considered neutral.
Despite the slower than expected return of workers to major business precincts, the result showed industry confidence nearly tripling since the height of the pandemic, when only 58 index points were recorded during the March 2020 quarter.
According to executive director Chris Mountford, the higher confidence levels prove a remarkable recovery for Queensland.
“Queensland’s property sector proved resilient throughout the challenges of last year and is now spearheading the state’s economic recovery,” Mr Mountford said.
“The industry has recorded strong results on most metrics of success, from crane counts to property clearance rates, to our own quarterly confidence surveys.”
However, Mr Mountford advised caution as the impact of Brisbane’s most recent lockdown has yet to fully manifest.
“These positive results were recorded prior to Brisbane’s most recent lockdown and while the benefits of government stimulus programs continue to be felt,” he explained.
“It is well documented that these lockdowns cost our economy millions and impact on the confidence of employees to return to their places of work.”
At the moment, office occupancy within the Brisbane CBD has stagnated at around 63 per cent, which shows that recovery in city centres has not been as strong as in other property sectors, Mr Mountford commented.
Looking ahead, he believes that government and private sector support will be critical in the road to full recovery for Brisbane and the rest of Queensland.
“With the end of JobKeeper and the ever-present spectre of another lockdown, there is clearly a need to support our CBDs and the many businesses that rely on the daily visitation of workers, students and tourists to make ends meet,” the executive director concluded.
More from this writer:
-
Why it’s still worth selling – even in lockdown
-
Over 200 Perth suburbs see winter price growth
-
Auction volumes on their way back up
-
Low interest rates drive record refinancing
-
Tassie’s own $20k HomeBuilder grant finds early success
-
Capital cities see stronger auction success
-
2020 vs 2021: How lockdowns have impacted the market