The latest ANZ/Property Council Survey has shown NSW property industry confidence has dropped to the lowest in the nation on the back of a period of political and policy uncertainty.
NSW property industry confidence has dropped ten index point from 119 to 109 over the quarter and has fallen 32 index points over the 12 months to June 2019. A score of 100 is considered neutral.
Lower forward work schedule expectations and staffing level expectations have dragged down construction activity sentiment, contributing to lower results across the board with only the industrial sector on an upward trend.
"Political uncertainly matched with a slowing residential market has had a big effect on industry sentiment with NSW moving from the most confident to the least in the space of the past 12 months," Acting Property Council NSW Executive Director William Power said today.
Index |
Overall Context |
Quarterly Result |
Quarterly Change |
Comment |
Confidence Index |
POSITIVE |
DOWN |
119 to 109 |
A fall of ten index points to the lowest across the country |
State Economic Growth |
NEGATIVE |
DOWN |
-3 to -17 |
The lowest economic growth sentiment on record |
State Govt Performance |
POSITIVE |
UP |
-2 to 8 |
Sentiment bounced back over the quarter to positive territory |
Debt Finance Availability |
NEGATIVE |
UP |
-34 to -17 |
Despite a large increase over the quarter, the results is still below the national trend |
House Capital Growth |
NEGATIVE |
DOWN |
-60 to -62 |
Remains the lowest housing sentiment in the country |
Forward Work Schedules |
POSITIVE |
DOWN |
30 to 25 |
Sentiment slowed over the year to June 2019 quarter. |
Staffing Levels |
POSITIVE |
DOWN |
23 to 11 |
The lowest staffing result recorded across the country |
"A state election and policy and political uncertainty will always have an impact on industry sentiment, however, matched with constrained debt financing, a slowing residential market and potential changes to Federal housing policy, we have a perfect storm.
"It is time to steady the ship. We must see clear leadership and a new focus from the recently elected State Government on issues such as planning reform and infrastructure contributions.
"A renewed policy focus is not the only answer to strengthen industry sentiment, however, it sets a strong foundation to encourage further investment and boost potential job growth."
To view select ANZ/Property Council Survey historical data series in the Property Council's Data Room, click here.
