Canberra property industry shows signs of confidence: ANZ / Property Council survey

Canberra’s property industry is showing strong signs of confidence according to the latest ANZ/Property Council Survey released on Thursday.

The June 2018 quarter survey measured the views of more than 1000 property industry professionals across the country on eight government and economic factors. The survey measures property industry sentiment and forward looking views for the next 12 months. 

Each state and territory was given a confidence index score. The ACT’s score was up by seven points from last quarter – 137 to 144. A score of 100 is considered neutral. The nation’s capital came in at third place, behind South Australia and Victoria, and just above the national average of 143.

ACT Property Council executive director Adina Cirson said the ACT is showing the most confidence in employment.

“The ACT results confirm positive expectations for our city – with growth projected in forward work schedules and a huge increase in staffing level expectations – up 15.9 points this quarter, with the ACT now leading the country,” she said.

“This means the sector is feeling more confident about locking into labour costs and is feeling very confident about hiring more staff, which means they also have confidence that their financial position and that the broader economy will continue to improve.”

While the report shows Canberra is showing signs of confidence, Ms Cirson said there are still concerns about rising interest rates and tightening around access to debt finance.

Respondents to the survey also showed concerns about the availability of land supply to meet the growing demand for independent retirement living dwellings.

“The sector continues to watch closely on policy challenges of cities and infrastructure, housing affordability, economic growth, tax reform, energy efficiency and global capital – with respondents citing these as the top issues to monitor going forward,” Ms Cirson said.

• Related: ‘Mixed signals’ for the Canberra market: ANZ/ Property Council Survey
• Related: Canberra’s median house price surges to record high 
• Related: ACT stamp duty falls, curbing national trend 

Sentiment towards the territory government on its planning for and managing growth remains in the negative but has shown improvement this quarter.

“It means that whilst there is confidence in the market – the ability to get on and deliver for Canberra remains heavily reliant in the ACT government being able to remain agile and respond to the demands in the market,” added Ms Cirson.

“This can be done through reduction of red tape, ensuring viability of development through fair and equitable taxes and charges, and making sure delays in planning caused by increasing volumes of approvals are minimised.”

On a national level, confidence has surged to its highest level in the six-year history of the survey.

Property Council Australia CEO Ken Morrison said, “Given the economic significance of the Australian property industry, the results from this survey are cause for optimism.”

“We’re seeing confidence across the industry at elevated levels in all states and territories, with South Australia, Queensland and the ACT the stand-outs in terms of improvement this quarter.”