The results of the latest ANZ/Property Council Survey have revealed that confidence levels across Victoria's property industry have fallen for the fourth consecutive quarter and show an immediate need for the Government to work with the sector to support innovative approaches to bolstering confidence.
The Property Council of Australia Victorian Executive Director, Cressida Wall, said "The results were not unexpected but confirms the need for the Victorian Government to engage in supporting the state's largest employer through economic headwinds and a period of uncertainty".
Industry confidence has fallen from 123 index points to 114 for the June 2019 quarter. The decline of 9 index points exceeds the national trend and confirms an ongoing decline in general industry sentiment. The industry confidence level in Victoria has fallen by 33 index points over the past year - the biggest drop in Australia.
The total index score for Australia contracted from 123 to 115 index points over the June 2019 quarter. A score of 100 is considered neutral.
"There is a national decline in market confidence that's being acutely felt in Victoria," said Ms Wall.
"It's critical that the State Government works with the industry to strengthen confidence in the property industry and that the upcoming State Budget addresses this," said Ms Wall.
"As Victoria's largest employer, accounting for over 331,000 jobs, the strength of the property industry is vital to the strength of the Victorian economy."
With the State Budget less than a month away, the Government must commit to policies that will encourage investment in Victoria, including:
- Introducing further stimulants to support build-to-rent as an emerging asset class;
- Re-instating stamp duty concessions for off-the-plan developments;
- Amending the C270 planning controls;
- Exempting non-residential property investments (commercial and industrial) from the Land Tax Absentee Owner Surcharge;
- Committing to the delivery of an additional 50,000 lots of development-ready land in Melbourne's growth corridors every year; and
- Requiring that GAIC funds are spent in the communities in which they are collected within a mandated five-year period.
To view select ANZ/Property Council Survey historical data series, visit the
