Property Council NSW Executive Director Katie Stevenson said the September survey demonstrated the underlying strength of the industry.
"Confidence in NSW has lifted to 129 index points, up from 124 last quarter, and remains above the national average of 124 points," Ms Stevenson said.
"Businesses are signalling strong hiring intentions, more work in the pipeline and rising capital growth expectations across housing, industrial and retail. That's a clear sign of an industry ready to invest and deliver.
"However, challenges remain - housing affordability, planning reform and property taxes rated as the most pressing issues for industry. The feasibility challenge is real, and that must be the focus if we are to get projects moving and meet our delivery targets.
"Confidence in the NSW Government's role in supporting jobs and growth has fallen, shifting further into negative territory, with a drop of 3.5 points - however, it's important to note the survey was conducted before last week's landmark NSW Planning System Reforms Bill and the launch this week of the Pre-Sales Finance Guarantee.
"Those reforms will help reduce some of the system's bottlenecks - but the challenge of project feasibility, driven by taxes, charges and infrastructure costs, remains front of mind for our industry," Ms Stevenson said.
The September 2025 survey for NSW shows:
- Confidence up to 129 index points (from 124 last quarter). A score of 100 is considered neutral.
- Staffing expectations positive, with firms looking to expand, and forward work schedules trending upwards.
- National economic growth expectations optimistic and state economic growth expectations still positive.
- Residential capital growth expectations up, reinforcing supply and affordability concerns.
- Office, industrial, retail, retirement and hotel sectors all forecast for growth - with retail in particular climbing strongly.
- Sentiment towards the federal government is negative across all jurisdictions.
"This is an industry supportive of the government's reform agenda and ready to back it with investment in jobs, projects and new homes. But further action on taxes, charges, planning and infrastructure delivery will be essential if NSW is to meet its housing and investment goals," Ms Stevenson said.
