The latest ANZ/Property Council Survey has shown NSW property industry confidence has improved significantly for the December 2020 quarter, reflecting an improved outlook across property sectors due to the easing of COVID restrictions and bounce back in the economy.
NSW property industry confidence has increased by 39 index points from 84 to 123 index points over the quarter, which is on par with the national confidence index and brings confidence back into positive territory. A score of 100 is considered neutral.
"The return of confidence for the property industry in NSW and across the country is a great step in the right direction and we are absolutely pleased to see a major uplift in confidence," Property Council NSW Executive Director, Jane Fitzgerald said today.
"There is no doubt that 2020 has been tough for all businesses and COVID-19 is still causing some uncertainty for the industry, however overall there is an uplift in confidence across all sectors and a much more positive outlook for recovery, with increased forward work schedule expectations and economic growth expectations.
Index |
Overall Context |
Quarterly Result |
Quarterly Change |
Comment |
Confidence Index |
POSITIVE |
UP |
84 to 123 |
Confidence levels returned to pre-COVID levels |
State Economic Growth |
POSITIVE |
UP |
-40.2 to 22.5 |
Highest sentiment since 2017 |
State Govt Performance |
POSITIVE |
UP |
30.6 to 43.9 |
Highest sentiment on record |
Debt Finance Availability |
POSITIVE |
UP |
-15.3 to 8.7 |
Sentiment levels returned to pre-COVID levels |
House Capital Growth |
POSITIVE |
UP |
-32.8 to 30.1 |
Expectations return to positive territory |
Forward Work Schedules |
POSITIVE |
UP |
0.0 to 26.6 |
Expectations return to positive territory |
Staffing Levels |
POSITIVE |
UP |
-4.4 to 10.5 |
Expectations return to positive territory |
"Support for the NSW Government is still strong and there appears to be a continued positivity from the industry in their efforts to move ahead with reforms to fix our complex planning system and their focus on developing a strong future pipeline of work to keep people in jobs and drive growth to support the economic recovery of NSW.
"We would like to see the great work and leadership continue by the government in getting people back into our CBDs and into offices, and to keep momentum going to reactivate our city centres across Greater Sydney and regional cities to drive further economic activity.
"While most indices are moving in the right direction, office occupancy in Sydney's CBD is still extremely low, with occupancy down from 90% pre-COVID to the current rate of 45%. The optimism around the city must flow through to certainty in maximising office occupancy in order to support employment growth in the nation's business hub.
"With the support for government at a high, now is the time for a bold and ambitious development agenda to keep Sydney CBD as a global business and leisure destination post-COVID. It is the beating heart of our state and we need to work with all levels of government to ensure that it continues to evolve as a global city, and the right policy settings and incentives are in place to ensure that this continues well into the future," said Jane Fitzgerald.
To view select ANZ/Property Council Survey historical data series in the Property Council's Data Room, click here.
