While confidence within NSW property industry has slightly decreased in the face of uncertainty around macroeconomic conditions, the property sector remains resilient, according to the latest ANZ/Property Council survey.
The latest survey of NSW Property Council members found the overall Confidence Index decreased by 11 points in the December quarter to 110. A score of 100 in the Confidence Index is considered neutral.
Respondents in NSW and Victoria were significantly more pessimistic about the economy than those elsewhere in the country.
Property Council's Acting NSW Executive Director Adina Cirson said the results reveal companies have confidence in their won operations, but external factors such as interest rates and construction costs are weighing on sentiment.
"Confidence in the property industry is torn between the largely positive indicators within their own businesses and the swift moving uncertainties in the macroeconomic environment," Ms Cirson said.
"On one hand, work pipelines and employment expectations are still strong, while on the other, interest rates, inflation, construction costs and skills shortages are still providing challenges for the property industry.
"Members are also saying that more needs to be done by the NSW Government on housing supply and affordability - citing it as the most critical issue facing the industry followed by taxes and charges and planning constraints."
The survey also found that the lag effect of the COVID-19 pandemic continues to be of concern with the greatest impacts noticeable in the commercial office sector, followed by the hotels, tourism and leisure sectors.
