The latest ANZ/Property Council Survey has shown NSW property industry confidence decreased slightly overall mainly due to concerns over worsening macroeconomic conditions and a reduction in forward work expectations.
NSW property industry confidence has decreased 10 index points from 126 to 116 over the quarter and has fallen four index points over the 12 months to December 2019. A score of 100 is considered neutral.
Following the outcomes of both the NSW and Federal elections earlier this year, confidence has moderated, with perceptions around the national economy and GDP growth weakening, playing a major part in the drawing down sentiment across the property sector.
The bounce in house capital growth expectations in NSW is a positive sign for the state economy and illustrates a stimulation of the market, with a solid construction outlook and the availability of housing finance improving following a recent slowdown of the market.
"It is great to see an improvement in the residential sector with strong housing supply integral to our State's economic future. Housing supply and affordability was front of mind as an issue for respondents as part of the survey," Property Council NSW Executive Director Jane Fitzgerald said today.
"We must not lose focus on the importance and pressing need of working with local and state governments to continue providing a diverse choice of housing at affordable prices for our local communities.
Index |
Overall Context |
Quarterly Result |
Quarterly Change |
Comment |
Confidence Index |
POSITIVE |
DOWN |
126 to 116 |
A decrease of 10 index points |
State Economic Growth |
NEGATIVE |
DOWN |
5.4 to -6.5 |
Moved back into negative territory |
State Govt Performance |
POSITIVE |
DOWN |
21.3 to 2.4 |
Largest quarterly drop on record |
Debt Finance Availability |
POSITIVE |
DOWN |
12.2 to 6.4 |
Quarterly drop but still in positive territory |
House Capital Growth |
POSITIVE |
UP |
-14.3 to 21.2 |
Positive for the first time in two years |
Forward Work Schedules |
POSITIVE |
DOWN |
39.1 to 35.5 |
Quarterly drop but still positive |
Staffing Levels |
POSITIVE |
DOWN |
17.6 to 13.3 |
A decrease of four index points |
"The second most critical issue was the need for planning and regulation reform, which clearly shows that the property industry wants to see clear leadership from the NSW Government and a commitment to a long-term strategy to fix the planning system.
"We are continuing to work with government to ensure that this is a top priority, together with the impact of the existing regime of property fees, taxes and charges across local and state government which is a major impediment to our State's productivity.
"With a weaker national economy on the horizon, it is imperative that we do not lose sight of the importance of these reforms in enabling NSW to continue to thrive, allowing for continued investment in the property sector and jobs growth for the people of NSW."
To view select ANZ/Property Council Survey historical data series in the Property Council's Data Room, click here.
