The latest Procore/Property Council Confidence Survey shows the ACT's confidence index has fallen to 55.6, well below the neutral benchmark of 100 and the lowest result recorded by any Australian jurisdiction.
Property Council ACT & Capital Region Executive Director Ashlee Berry said the results should serve as a wake-up call for policymakers about the importance of maintaining a competitive and investment-friendly environment.
"The property sector wants to invest in Canberra, build the homes our growing city needs and create jobs, but this survey shows confidence has been significantly shaken," Ms Berry said.
"Confidence matters because confidence drives investment, and investment is what ultimately delivers new housing, workplaces, community infrastructure and employment opportunities."
The survey found the ACT recorded the weakest confidence result in the country, alongside sharp declines in expectations for staffing levels, future work schedules and market conditions.
Ms Berry said the findings reflect growing concern about the cumulative impact of costs, regulation and uncertainty on development feasibility.
"The message from industry is not that reform should stop, it's that every new cost, requirement and layer of red tape has consequences for investment decisions.
"Canberra needs more homes, more jobs and more private sector investment and that means policy settings that support those outcomes."
Ms Berry said the survey was conducted before the ACT Government announced it would reconsider elements of its proposed developer licensing reforms.
"The Government's willingness to step back and review aspects of developer licensing was a welcome positive step, and it shows that consultation can lead to better policy outcomes.
"It's encouraging, but these results suggest opportunity to go much further in rebuilding confidence and supporting investment.
"If we want more housing supply and stronger economic growth, we need settings that encourage investment rather than making projects harder to deliver."
Ms Berry said the sentiment survey should prompt renewed focus on development feasibility and the cumulative impact of policy decisions on housing delivery.
"Every regulation, levy, charge and compliance obligation may seem manageable on its own, but together they affect whether projects proceed."
"This survey is a reminder that a thriving property sector is not just good for our industry. It's essential for housing affordability, jobs, economic growth and the long-term prosperity of the ACT."
