Coronavirus continues to weigh on property sentiment: ANZ
The ANZ-Property Council Survey for the September quarter showed a modest improvement in sentiment across Australia’s property sectors, although it remains deep in negative territory as COVID-19 and the associated shutdown of economic activity cuts across the economy.
The impact of COVID-19 is immense. Nationwide, almost all respondents report being negatively hit.
Encouragingly, 60% of businesses expect the impact to improve over the coming quarter, however keep in mind that this survey closed on 1 July, before Melbourne’s shutdown was announced.
In the residential sector, overall sentiment remains negative across all states and territories.
Price expectations fell further into negative territory, while the employment outlook remains challenging. The outlook for construction and forward orders, however, are both now positive and improving, clearly helped by the HomeBuilder scheme.
In a special question on the Commonwealth Government’s HomeBuilder program, respondents within the residential sector were broadly positive about the scheme, with 60% reporting that it would have a positive impact on their business.
In commercial property, sentiment remains deeply negative across all sectors except industrial, where confidence is now back in positive territory. Sentiment in the office sector declined and was broadly flat in the tourism sector where confidence is the weakest.
