The latest ANZ/Property Council Survey has shown NSW property industry confidence has improved with a more positive outlook due to a strengthening residential market and better growth expectations.
NSW property industry confidence has increased eight index points from 116 to 124 over the quarter and has increased by five index points over the 12 months to March 2020. A score of 100 is considered neutral.
Following political uncertainty in the first half of 2019 and changes in the banking and financial sector, the last six months has shown a more positive outcome with an increase in confidence across industry, an improved outlook for the residential market and major investment into the economy through large infrastructure projects underway across NSW.
“The growth of some confidence in the residential market is a positive sign for the state economy, and with better growth expectations across this sector and better availability of finance for housing, we hope to see continued growth in confidence,” Property Council NSW Executive Director Jane Fitzgerald said today.
“Though we are seeing more positive signs, we must not forget that overall housing approvals and construction forecasts remain slow across the state, and this continues to have an impact on housing supply and affordability.
“The recent announcement by the NSW Premier that planning reform will be a major focus for the government in 2020 comes at a critical time, with the state economy slowing and housing approvals weakening following a significant period of growth.
116 to 124
An increase of eight index points
State Economic Growth
-6.5 to 1.6
Moved from negative to positive
State Govt Performance
2.4 to 0.2
Overall neutral performance, albeit slightly positive
Debt Finance Availability
6.4 to 8.5
Third consecutive quarter of expected credit availability
House Capital Growth
21.2 to 38.3
Highest expectations in NSW in over four years
Forward Work Schedules
35.5 to 39.6
Strong positive expectations
13.3 to 19.2
An increase of six index points
“Planning reform and the impact of the existing regime of property fees, taxes and charges across local and state government are still critical issues for the property industry, and we welcome the NSW Government’s commitment to focusing on these reforms in 2020.
“We must continue to be vigilant – we need a better planning system that will provide greater certainty for the community and industry to enable our state to grow well, while supporting investment and better productivity, more jobs and more affordable housing.
“We have a unique opportunity to enact reforms that will set up our state up for the next few decades, and we look forward to continue working with the NSW Government to ensure this potential is realised and we put the right steps in place to fix the planning system.”
To view select ANZ/Property Council Survey historical data series in the Property Council’s Data Room, click here.