Property Industry key to COVID-19 Recovery
The latest ANZ/Property Council Survey has shown NSW property industry confidence is at an all-time low due to the COVID-19 crisis which is impacting the economy significantly across all sectors of the property industry.
NSW property industry confidence has decreased 59 index points from 124 to 65 over the quarter, with all states and territories across Australia taking a hit due to COVID-19. A score of 100 is considered neutral.
"As we have seen over the last few weeks, there is no doubt that the challenges and impacts from COVID-19 are being felt right across the country, and managing this crisis is tough and a testing time for all sectors of the property industry," Property Council NSW Executive Director Jane Fitzgerald said today.
"Undoubtedly, there are some sectors who have been harder hit than others, with hotels and tourism being hit the hardest, followed by retail and commercial office, but overall a significant impact on all sectors, with all reporting a moderate to serious impact in relation to construction schedules and growth expectations over the next few months.
Index |
Overall Context |
Quarterly Result |
Quarterly Change |
Comment |
Confidence Index |
NEGATIVE |
DOWN |
124 to 65 |
The lowest confidence result on record |
State Economic Growth |
NEGATIVE |
DOWN |
1.6 to -79.5 |
The lowest economic growth sentiment on record |
State Govt Performance |
POSITIVE |
UP |
0.2 to 2.4 |
Sentiment remained in positive territory |
Debt Finance Availability |
NEGATIVE |
DOWN |
8.5 to -12.0 |
The result is in line with national trends |
House Capital Growth |
NEGATIVE |
DOWN |
38.3 to -24.2 |
Despite a large decrease over the quarter, the result is more optimistic than June 2019's result of -62 index points |
Forward Work Schedules |
NEGATIVE |
DOWN |
39.6 to -15.8 |
The lowest sentiment on record |
Staffing Levels |
NEGATIVE |
DOWN |
19.2 to -11.4 |
The lowest staffing level result on record |
"These results highlight the absolutely critical nature of our work with the NSW Government to keep construction going and to keep those who are working in the property and construction industries in a job. Our industry is going to be vital in the post COVID-19 recovery phase, and ensuring we have a solid pipeline of construction projects is essential.
"The recent announcement by the NSW Government on the 'Planning System Acceleration Program' is a good step in the right direction - a more efficient and productive planning system has never been more important than it is now for our state's economy and our industry needs the extra support, leadership and confidence from Government at this time.
"We must continue to be vigilant - this is going to be one of the most testing and challenging periods for many across our industry. We need to do all that we can to create greater efficiencies in the planning system with a focus on accelerating projects stuck in the system and supporting local government. This will help to provide greater certainty for the community, businesses and the property industry."
To view select ANZ/Property Council Survey historical data series in the Property Council's Data Room, click here.
