Property sector confidence at highest level since 2018: ANZ/Property Council survey

The survey, undertaken in November, before the emergence of Omicron, showed future construction work expectations lifted in every State and Territory bar WA.

Property sector confidence at highest level since 2018: ANZ/Property Council survey
Property sector confidence at highest level since 2018: ANZ/Property Council survey

Confidence in Australia’s property sector has hit its highest point since March 2018, according to the ANZ/Property Council latest survey.

The Confidence Index rose 12 points nationally in the December quarter, off the back of substantial confidence boosts in the ACT (33 point increase), Victoria (25 point increase) and NSW (9 point increase) as the lockdowns ended.

Residential sentiment rose modestly and remains well above its long run average, Felicity Emmett, the ANZ senior economist noted.

Tighter macroprudential restrictions is likely to be a factor in 2022 with 17% of the survey respondents expecting finance to be more difficult to access over the next year, the survey noted.

The survey highlighted continued lower expectations of house price gains, although 67% in the sector expect prices to rise over the next year, albeit down from 87% in the March quarter.

"This is not surprising given affordability constraints, a strong rise in new listings, macroprudential tightening and higher mortgage rates," she noted.

Construction expectations lifted, with the largest increases in NSW and Victoria where shutdowns have pushed some activity out into 2022.

Property Council of Australia Chief Executive Ken Morrison said the results painted a positive picture for a strong economic rebound for Australia next year.

“The sentiment in this survey is clear: The property industry – which employs more Australians than any other sector – is set and ready for recovery,” Mr Morrison said.

“These results show the industry is clearly optimistic about the state of the economy and commercial and residential property markets in the year ahead, having emerged from the challenges COVID-impacted last two years,” he said.

“It’s very clear that our members’ forward work expectations have lifted, and as a result they’re also expecting to hire more people to deliver that work,” he said.

The survey, undertaken in November, before the emergence of Omicron, showed future work expectations lifted in every State and Territory bar WA.

“Despite the Reserve Bank of Australia’s (RBA) indications of static interest rates, our members expect they will rise over the next 12 months, and in turn, expectations for continued house price growth have eased,” he added.

Heading into a federal election in 2022, the survey also signalled the sector’s critical issues requiring Federal Government attention.

“Our industry’s key leaders are clearly saying housing supply and affordability is their number one issue, followed closely by emissions, environment and energy. Planned population growth is also of concern, given the industry clearly expects to be requiring more skilled workers,” Mr Morrison said.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

Community Discussion

Be the first one to comment on this article
What would you like to say about this project?