Confidence bounces back in ACT property sector against national downward trend
Property industry confidence in the ACT is holding up well despite a national downward trend, according to ACT Executive Director of the Property Council, Adina Cirson. The ANZ/Property Council Survey for the December 2019 quarter shows that the ACT is leading industry confidence and expectations across most of the segments surveyed. The ACT led the nation on expectations around forward work schedules and capital growth levels across most asset classes.
The December 2019 quarter survey showed a 21-point increase in confidence levels in the ACT- up to 144 points to be well above all other states and territories tracked. The ACT confidence levels are at their highest point in over 18 months and close to historic highs.
Expectations are particularly high for forward work schedules, staffing levels, state economic growth, residential, office, retirement and hotel capital growth – all out-performing every other jurisdiction. Notably, Canberra was the only market tracked to record positive retail expectations.
“There is an extremely optimistic outlook for the Canberra property market backed up by recent CoreLogic / ABS data shows us weathering the property market storm present in other capital cities, with residential construction (up 17%), lending (value $5 billon over 12 months) and auction clearance rates (up to as high as 80% mid last month). This is teamed with data out last week which demonstrates that 9 in 10 Canberrans made a profit through home ownership, despite other weaker capital city markets,” Ms Cirson said.
“It is great to see the ACT is not only back on track after a significant dip earlier this year – which was tied to uncertainty during the federal election period and mooted APS cuts.
“We know that we have one of the fastest growing regions in Australia, and now is the time to seize the opportunity being demonstrated through market confidence. The ACT has identified that vibrant city centres (23%), planning and regulation reform (20%), property taxes and charges (20%), and housing supply and affordability (17%) are the most critical issues the property industry would like to see addressed by State Government.
“Now is the time to plan ahead with strategic investment and growth policies which meet the demands of a growing and ageing population, which in turn creates jobs and keeps Canberra punching above its weight,” Ms Cirson concluded.
To view select ANZ/Property Council Survey historical data series in the Property Council’s Data Room, click here.