Property industry sentiment has reversed and is down across the board, even in the nation’s resource-driven states, according to new research released by The Property Council of Australia.
The Property Council of Australia - ANZ Property Industry Confidence Survey shows sentiment moved from 113 to 106 for the September quarter.
The survey polled more than 3100 professionals from the property and construction sector in all states and territories for their forward-looking views.
Key findings for the survey revealed expectations for state economic growth are the lowest for NSW, followed by Victoria. The ACT recorded the biggest shift in sentiment, dropping by 16 points on the index, and along with South Australia, was the only states or territories to shift from positive to negative over the quarter.
Property Council Chief Executive, Peter Verwer, believed Expectations for staffing levels and forward work are the cause for most concern.
“Staffing level expectations have been in decline for four quarters but now appear to be accelerating downward.”
“The property industry’s expectations for the national economy have also worsened. Although there was a brief lift in sentiment in the June quarter, the turn-around has been swift and hard.”
“The Survey also shows there has been a big shift in expectations for interest rates - respondents are more confident of an interest rate cut than at any other point in the series.”
ANZ Chief Economist, Warren Hogan, says market fundamentals suggest the broader commercial property sector may be at the early stages of a multi-year cyclical upswing.
“Capital expenditure expectations and our assessment of proposed major resource and infrastructure projects suggest we are at the early stages of a multi-year investment boom that will underpin solid growth in economic activity and employment,” Mr Hogan says.
“Nonetheless, the fruits of the boom will be spread unevenly across states and sectors, with Western Australia, Queensland and the Northern Territory the major beneficiaries.”