NSW property industry confidence improves, ANZ survey
The latest ANZ/ Property Council Survey has revealed improved confidence in NSW property industry.
Due to a strengthening residential market and better growth expectations, there is overall a more positive outlook.
NSW property industry confidence has increased by eight index points from 116 to 124 over the quarter and has increased may five index points over the 12 months to March 2020. A score of 100 is considered neutral.
Source: 2020 ANZ/Property Council Survey Chart Book, MAR QTR.
Political uncertainty in the first half of 2019 and changes in the banking and financial sector which, as shown in the graph, saw a significant drop in confidence. Meanwhile, the last six months have shown a more positive outcome with an increase in confidence across the industry, an improved outlook for the residential market and major investment into the economy via large infrastructure projects underway across NSW.
Property Council NSW executive director, Jane Fitzgerald said the growth of some confidence in the residential market is a positive sign for the state economy, and with better growth expectations across this sector and better availability of finance for housing.
"We hope to see continued growth in confidence.
"Though we are seeing more positive signs, we must not forget that overall housing approvals and construction forecasts remain slow across the state, and this continues to have an impact on housing supply and affordability.
"The recent announcement by the NSW Premier that planning reform will be a major focus for the government in 2020 comes at a critical time, with the state economy slowing and housing approvals weakening following a significant period of growth.
"Planning reform and the impact of the existing regime of property fees, taxes and charges across local and state government are still critical issues for the property industry, and we welcome the NSW Government's commitment to focusing on these reforms in 2020.
"We must continue to be vigilant - we need a better planning system that will provide greater certainty for the community and industry to enable our state to grow well, while supporting investment and better productivity, more jobs and more affordable housing."
