The latest Procore/Property Council Industry Sentiment Survey shows ACT confidence falling to 80 index points, down from 113 last quarter and well below the national result of 104.
Property Council ACT & Capital Region Executive Director Ashlee Berry said the March results provide one of the first industry snapshots to capture the impact of the Middle East conflict, fuel shortages and escalating cost pressures on Canberra based property and construction businesses.
"This survey was conducted between 9 and 27 March, right as global energy markets tightened and fuel price volatility surged. In the ACT, that has translated into a sharp deterioration in confidence as higher input costs collide with already challenging feasibility conditions," Ms Berry said.
"ACT confidence has fallen below neutral, signalling very real caution among businesses. While demand fundamentals remain, firms are clearly telling us that rising construction, financing and operating costs are making new projects harder to stack up."
The March 2026 survey for the ACT shows a broad-based weakening in expectations:
- Staffing intentions have softened and are now around neutral, signalling growing caution around hiring and investment decisions.
- Forward work schedules declined over the quarter, reflecting delays, reprioritisation and feasibility reassessments.
- Expectations for both national and ACT economic growth are firmly negative, with ACT respondents among the weakest nationally.
- Interest rate expectations have swung decisively, with ACT firms overwhelmingly expecting further rate rises, amplifying cost pressures.
- Debt finance availability is expected to deteriorate further, tightening constraints on development and construction activity.
Capital growth expectations in the ACT show a mixed and weakening outlook. While some sectors remain marginally positive, residential and hotels expectations have moved into negative territory, and office conditions remain subdued, reflecting higher financing costs, softer demand and heightened market uncertainty.
Ms Berry said the ACT Government's willingness to engage constructively with industry during this period has been critical.
"We appreciate the regular and open communication we continue to have with the ACT Government, and the sensible decision taken in relation to the National Construction Code is welcome news for industry at a time when costs and feasibility are under significant strain," Ms Berry said.
"What will matter most over the period ahead is maintaining that dialogue – continuing to explore all available options and being willing to adjust policy settings when conditions change."
Ms Berry said the ACT results highlight how exposed smaller and more tightly balanced markets are to global shocks and that sensible, flexible decision making will be critical to supporting confidence.
"Fuel is a critical input across construction, freight and materials. When global disruptions feed directly into higher local costs, smaller markets like the ACT feel the impact faster and more acutely," she said.
Ms Berry said the findings reinforce the need for the ACT Government to prioritise action on the costs it can control.
"Planning reform, clear decision-making timeframes and infrastructure coordination matter more than ever, but they must be paired with discipline on taxes, charges and regulatory costs that directly affect project feasibility," she said.
"If we want confidence to recover and translate into real delivery in the ACT, we need settings that reduce risk, restore viability and support investment at a time when global forces are already driving costs higher," Ms Berry said.
