Victorian property industry optimistic for 2021

Victoria’s property industry is optimistic for 2021, despite enduring the most challenging year in living memory.

The latest results from the quarterly ANZ/Property Council industry sentiment survey have found that confidence in the Victorian property industry has rallied from 64 to 115 index points (with 100 index points being neutral).

Property Council Victorian Interim Executive Director, Matthew Kandelaars, said that the industry has been buoyed by the gradual lifting of restrictions and recent initiatives included in November’s State Budget.

“Across nearly every measure and every sector, the industry is optimistic about growth potential in 2021,” Mr Kandelaars said.

“This is a significant jump in confidence in just a single quarter and bodes well for the property sector to lead Victoria’s economic recovery in the new year.”

Industry confidence has been bolstered by newly announced State Government stimulus initiatives including stamp duty waivers, support for the emerging build-to-rent sector and record social housing investment.

Mr Kandelaars warned that the rate of return of Victorians to their workplaces will have a significant impact on the state’s economic recovery and future confidence levels.

Office buildings in Melbourne’s CBD are currently only 13% occupied, compared to Sydney at 45% and Brisbane at 61%. The Victorian Government has announced increases to maximum office occupancy, a pathway for the return of the public sector and the relaxation of face mask rules within offices for 2021.

“The property sector is keen to see continued progress in reactivating Melbourne’s CBD, which accounts for a quarter of the State’s economy,” Mr Kandelaars said.

“If Melbourne’s pattern of office return mirrors comparable cities across the globe, the CBD would not see a return to full occupancy until early 2022.”

“The quickest way to supercharge Victoria’s economic revival and boost industry confidence is to support the continued safe return of workers to Melbourne’s CBD.”

To view select ANZ/Property Council Survey historical data series in the Property Council’s Data Room, click here

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