- Confidence still at record highs
- Strong economic growth and large pipeline of work buoys figures
- Housing affordability is a key concern
The latest data is in from the ANZ Property Council quarterly survey, and national confidence was found to be 139 points.
A score of 100 is considered neutral, and the recent result is the third-highest since the survey began – albeit three index points lower than the last quarter.
Decreases were recorded across a number of other metrics: national forward work expectations went from 53 to 48 over the June 2021 quarter, national staffing level expectations down by six index points to 23, and national economic growth expectations decreased to 33 index points.
National growth for the industrial sector also decreased, five index points, to 36 points, but it wasn’t all down.
Office capital growth increased to -10 index points, retail also saw a rise, up three index points, although the sector was still in negative territory.
Likewise, other hard-hit sectors are expecting growth, hotels increased 10 points to -19 index points.
While decreases in some areas were recorded, property is nonetheless in prime position.
“The latest ANZ-Property council survey shows that confidence remains buoyant. A strong outlook for economic growth across the country, a very large pipeline of residential construction work and solid expectations for property prices are all supporting this confidence.”
Felicity Emmett, ANZ Senior Economist
Issues to resolve
The real concern, however, lies in housing affordability.
Mike Zorbas, Property Council Group Executive of Policy & Advocacy, said “the survey results have found that housing supply and affordability have solidified as the key area that industry participants want the Federal and State governments to focus on for recovery.”
“Poor supply is the enemy of housing affordability.”
Mr Zorbas added, “We need to be investing in the right infrastructure, fixing housing affordability, reforming archaic planning systems, phasing out stamp duty, getting zoning right and investing in social housing,”
There are many pieces to the property puzzle, the Australian Capital Territory recently acted on the calls by many for a change to stamp duty, axing the tax altogether for some properties.
The Property Council also said “there remains a strong need for [the] National Cabinet to develop a roadmap for entry into and exit from ‘lockdowns’ and, to accelerate purpose-built quarantine arrangements so that safe immigration of students and high-value workers can occur regardless of the status of vaccine rollout.”
After a fast-growing boom over the past few months, it is natural for things to ease off a little, even though continued property growth is also predicted.