Queensland's property industry the country's second most confident: PCA/ANZ

Though eclipsed in confidence by New South Wales, the Queensland property industry remains positive about the next financial year, according to the Property Council/ANZ Property Industry Confidence Survey.

In a national poll of 2,300 property and construction professionals, the Property Council and ANZ found that Queenslanders had a bullish perspective this quarter, with confidence measuring above the national average.

Chris Mountford, Queensland deputy executive director of the Property Council of Australia, says Queensland's outlook has remained stable, despite "a turbulent period of state and federal budget announcements".

“This quarter Queensland sentiment rose one point, up to 136 on the scale – five points above the national index,” says Mountford.

“Queensland’s bullish outlook is second only to New South Wales which continues its run as the most positive state in the country.

“There is a sense of optimism about the financial year ahead with respondents upbeat about the state’s economic growth prospects for the next 12 months."

He says the state's confidence levels parallel state budget forecasts.

“The industry is anticipating positive increases in capital values across the residential, retail, industrial, hotel and retirement property sectors.  

“This aligns with the Queensland State Budget projections which rely heavily on the property industry to support a predicted 3 per cent growth over the next 12 months.

“This is further evidence that a healthy property industry is the foundation of a strong Queensland economy," he explains.

ANZ Senior Property Analyst, David Cannington, says some sections of the state's economy have shown promise, despite a downturn due to the decline of the mining sector.

“In particular, improved global economic conditions and a lower AUD have provided a boost to Queensland’s tourism industry, with international tourism arrivals increasing in recent months," says Cannington.

"Housing market conditions have also broadly improved, although remain divergent across the state, with upbeat conditions in Brisbane and south east Queensland, while regions exposed to the mining and resources sectors are underperforming.

“The outlook for Queensland’s commercial property sectors also reflects divergent conditions across industries, with the secondary office sector in particular weighed down by weak office employment and elevated vacancy rates," Cannington says.

"In contrast, the outlook for employment and capital growth in the retail, hospitality and health sectors are more buoyant.”

Mountford also singles out the office sector as a source of concern.

“The only segment that remains in negative territory is the office sector due to a unique and challenging blend of issues confronting the Brisbane CBD and Fringe office markets," says Mountford.

“Tackling these challenges will require a collective focus from industry and government in the coming months to ensure growth and prosperity in Brisbane’s CBD," he explains.