Property Council

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The ANZ-Property Council Survey for the December quarter shows that sentiment in Australia’s property sector has fallen sharply to the lowest level in two years. 
Sentiment in the residential segment has fallen to the lowest level since 2012.
NAB found the same results in their Quarterly Australian Residential Property Survey, which prompted them to change their <a href="https://www.urban.com.au/news/90532-nab-change-forecast-after-confidence-collapses" target="_blank">forecast to predict further losses.</a>
Much like NAB's survey, ANZ-Property Council Survey found that bearing the brunt of the weaker confidence was New South Wales and Victoria.
They noted the decline was recorded across all states and territories. 
Click here <a href="https://www.propertyobserver.com.au/images/2018/10/11/ANZ-Figure1.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/10/11/ANZ-Figure1.jpg" alt="">
David Plank, ANZ head of Australian economics, said the downturn in the housing outlook is significant, although not surprising. 
"The survey supports our view that both house prices and residential construction are set for a period of decline," Plank said.
"The expectations of tighter credit availability and higher interest rates, if realised, will weigh on the housing market for some time.
"We think housing prices will nudge lower through to 2020, before stabilising through the remainder of that year," Plank suggested.
He said that they do not anticipate the scale of price declines accelerating, given that the economy and household finances are still generally in good shape.
ANZ expect housing construction to post material declines through 2019 and 2020.
Click here <a href="https://www.propertyobserver.com.au/images/2018/10/11/ANZ-figure2.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/10/11/ANZ-figure2.jpg" alt="">
Ken Morrison, chief executive of Property Council of Australia, said that sentiment is softening in critical areas.
“This report shows that sentiment – while still positive – is softening in critical areas across an industry that is Australia’s biggest employer and supports 1.4 million jobs,” Morrison said.
“This shift in sentiment needs to be on the radar of policy makers because now more than ever we need strong investment, tax and planning regimes to keep the economy strong.” 
The outlook for construction and prices has worsened, and firms expect a double whammy of tighter credit conditions and higher interest rates over the next year. Demand from foreign buyers is still falling.
There was good news for the commercial property segment, where sentiment is much better.
"Although posting a small decline in the December quarter, confidence is still sitting at strong levels," the report read.
"The tourism, industrial and office property sectors report a solid outlook, although the retail sector is still challenged."
The ANZ/Property Council survey is based on responses from more than 900 property industry participants. The survey was conducted between 3-19 September 2018.   
 
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jrobinson-rf4aSBido9

Sentiment drops further as house prices to decline until 2020: ANZ-Property Council

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EXPERT OBSERVER
They say, “money makes the world go ‘round” and although it may seem crass and crude, it’s quite true. Take a drive through any of WA’s industrial estates – Henderson, Kewdale, Malaga, Wangara -and you’ll see the wheels of commerce turning. Look closer and you’ll see the workers that work hard all day to give precious economic security to their families.
In Australia’s biggest industry, property (bigger than mining and manufacturing combined), you’ll see people engaged in materials supply. Factories and warehouses producing tiles, beams, trusses, cabinetry and furnishings. Logistics workers get these components to site for construction which requires skilled plumbers, electricians, plasterers and a team of supervisory and administrative staff. Once a property is complete, more workers are needed, like accountants, lawyers, real-estate and leasing agents.
Every single one of these workers spends money in WA shops, buys food from our supermarkets and restaurants and pays for their kids’ education. Money indeed keeps WA moving.
For WA to grow and compete with the rest of the world we need more than just our own money circulating.
Foreign investment and exports are key factors in our success. Many of our West Australian jobs depend on an external injection of money, and the property industry is no different.
The Upper House is due to debate the Labor Government’s proposed foreign owner duty surcharge very soon – a proposed 7% surcharge on foreign purchasers of residential property in WA.
This tax is not just for rich, overseas investors, it’s for regular migrant mums and dads who want to build a home and a life in WA. Just like the many migrants from all over the world that have come to WA since its foundation and have made Perth the great City it is today.
An additional 7% impost will deter these migrants from choosing Perth. The greatest number of Asian migrants are from Singapore (China is in fifth position). With kids studying at Uni, they could just as easily choose another Australian or international city to settle.
We don’t have the issues of Sydney or Melbourne where the surcharge originated as a way to dampen demand. Our tentatively recovering property market needs support, especially in an environment of slowing demand due to tightening bank finance. 
Understandably, the McGowan Government is looking for new sources of revenue for budget repair. But with Building Approvals currently tracking at –19.4% [Source: ABS/Property Council July 2018] the timing is terrible. Also, key data indicators point to little revenue being raised in reality.
The WA budget has forecast $123million over 3 ½ years yet all industry bodies including the Property Council, REIWA and the UDIA warn that the number of transactions will fall. In fact, that’s exactly what’s happened in South Australia.
The SA budget was released last week and it demonstrates exactly what could happen if this surcharge were introduced here. The SA Government have reduced forecast tax receipts by 50%, stating “Conveyance duty forecasts also incorporate downward revisions to the Foreign Owner Surcharge in all years reflecting lower than expected collection in 2017-18 and projected lower demand from foreign buyers from 2018-19 compared to original estimates.”
Simply put, fewer property transactions equates directly to fewer jobs. This affects all workers that help make money move around the WA economy.
The Property Council calls on the Members of the Upper House to vote against this tax – for now at least. It may be needed one day in the future but now is not the time to risk West Australian jobs for little gain.
Sandra Brewer is the Executive Director of the Property Council of Australia WA
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j.ballantyne1990-6AQqhLzZaK

Charging foreign owners extra for property will cost WA jobs: Sandra Brewer

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At the Property Council WA Annual Golf Classic, property professionals raised $3,000 for the Kids Cancer Foundation.
“It’s great to see the industry stepping up to support the important work Kids Cancer Foundation provides as well as championing the industry’s diversity agenda,” Property Council WA Executive Director, Lino Iacomella said.
The event was a huge success with a record number of participants attending as well as a record number of female participants joining in on the fun.
<img src="https://www.urban.com.au/images/2017/09/15/IMG_5112.JPG" alt="">
The events success was contributed by major sponsor HFM Asset Management along with Airlite Group, Stockland and 3 Oceans Properties and Core Logic.
The overall winners of the tournament were Rowe Group, closely followed by Bankwest and Probuild.
“The property industry embracing the importance of diversity through the including of three women’s golf teams and numerous mixed teams.
<img src="https://www.urban.com.au/images/2017/09/15/IMG_5099.JPG" alt="">
“The golf classic was a fantastic way for the industry to network and grow their business in a unique and informal setting while raising funds and awareness of two very worthy causes,” Mr Iacomella said.
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Property industry swings in to action for Kids Cancer Foundation

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The Property Council welcomes the announcement that WA is set to be the first Australian capital city to enter into a City Deals agreement.
Lino Iacomella, Property Council WA Executive Director said the announcement by Federal Minister for Cities and Digital Transformation Angus Taylor that Perth is next in line for City Deals is a game-changer in achieving the twin goals of funding infrastructure and local planning reform.
“A City Deal is an agreement between federal, State, and local governments to deliver funding for infrastructure like a light rail project," he said.
“It’s about time WA receives a City Deal. 
“For too long WA has missed out on federal funding for infrastructure because we were not prepared.
“It is great that the WA Government has stepped up and commenced discussions with Canberra about doing City Deal.
“However, a few important steps need to be taken quickly if WA is to finally achieve a City Deals agreement.
“The State Government must fast-track the establishment of Infrastructure WA to ensure our infrastructure needs are prioritised and made transparent, which will allow the Federal Government to put aside funding well in advance.
“At the same time, the State Government must ensure that local governments modernise their local planning rules. 
“Property Council research found that most local governments in Perth do not have up to date local planning strategies which stalls development and deters much-needed investment in our State.
“City Deals will enable the State Government to fund election promises such as the Ellenbrook rail line and METRONET.
“These projects will create thousands of jobs as well as vibrant communities in the hubs that will surround the new transport nodes.
“Access to this funding mechanism is essential to keep WA growing,” Mr Iacomella said.
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WA City Deals will create jobs and vibrant communities

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Sydney councils are sitting on more than $1 billion in unspent infrastructure funds, according to the latest research by the Property Council of Australia.
The figure of $1,091,078,000 in unspent funds across 27 councils was revealed in the Property Council’s latest audit of infrastructure levies. The calculation was based on local government financial statements for 2015-16. 
“Councils are sitting on a billion dollars in unspent funds, funds that should be spent on providing services for the local community – funding libraries, local parks, sporting grounds,” said a media release from the PCA. 
“This money is sitting in the bank earning interest, $30 million in interest over 2015/16, instead of being used for the local community. This money is provided to councils to boost local facilities but instead they are hoarding it,” said Jane Fitzgerald – NSW executive director of the PCA.
She said the research confirms the need for tighter controls that require councils to spend the funds swiftly on infrastructure rather than just leaving them in the bank.
<ul>
<li>The amount of unspent funds increased by just under $115 million over the past year, a rise of 11.7 per cent.</li>
<li>$594,527,000 was collected through levies in 2015-16, but only $510,052,000 was spent</li>
<li>$30,084,000 was earned in interest over 2015/16</li>
</ul>
“With a booming population and big new growth centres across Sydney, it is vital that this money is used to ease the pressure on our community, the money is no good to the community sitting in the bank, but it is good for the Council’s balance sheet,” said Fitzgerald.
“Those Councils fighting amalgamations using rate payers’ money should start focussing more on spending the levies collected for vital local infrastructure rather than political grandstanding in court.”
<a href="https://www.propertyobserver.com.au/images/2017/05/16/Councils.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/16/Councils.png" alt="">
PCA said audit is sourced directly from the financial statements of councils across metropolitan Sydney for 2015-16 so the data is supplied by councils. 
Data was available for 27 councils with some amalgamated councils not providing data and other councils simply not making the data public
Over the past four years, the amount of unspent levies has increased by over 40 per cent, the PCA said. 
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jonathanchancellor-7SQnKwU6yx

Sydney councils sitting on unspent $1 billion stockpile: PCA 

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Susan Lloyd-Hurwitz, chief executive officer and managing director of the Mirvac Group, has been elected as the new national president of the Property Council of Australia.
Ms Lloyd-Hurwitz was previously national vice president to Mark Steinert who has concluded his two-year term.
She said her focus as president of the Property Council would be on policies that create productive and liveable cities and encourage housing that is attainable for everyone.
“Australia's cities and suburbs are under immense pressures – housing affordability, congestion, and infrastructure gaps are all taking their toll," she said.
"This industry is a natural partner to work with government and other key stakeholders to solve these problems.
“We can build better, more liveable and affordable cities, with world-leading infrastructure, and services that encourage strong and caring communities.
“The biggest challenges before our country and economy relate to our cities – How do we make housing affordable? How do we bridge the infrastructure gap? How do we create sustainable buildings and cities? And how do we build stronger communities?
"With a ‘housing affordability Budget’ only months away and governments across Australia working on solutions to improve housing supply, the property industry has never been more relevant.
"Mark has been a strong advocate for the industry during a time of significant debate.
"He has brought focus to the issue of diversity across the industry, and has made a significant contribution to promoting the important role the property industry plays in the Australian landscape."
The Board also elected David Harrison of Charter Hall and Kylie Rampa of Lendlease as national vice presidents.
Outgoing national vice president Carmel Hourigan will remain on the Board and take on new responsibilities as special adviser to the Property Male Champions of Change group.
The full Board is as follows:
<table border="1" cellspacing="0" cellpadding="0"><tbody>
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<td valign="top" width="124">
Susan Lloyd-Hurwitz
</td>
<td valign="top" width="302">
Chief Executive Officer and Managing Director, Mirvac Group (National President)
</td>
</tr>
<tr>
<td valign="top" width="124">
Mark Steinert
</td>
<td valign="top" width="302">
Managing Director and Chief Executive Officer, Stockland (Immediate Past President)
</td>
</tr>
<tr>
<td valign="top" width="124">
David Harrison
</td>
<td valign="top" width="302">
Managing Director an Group Chief Executive Officer, Charter Hall (National Vice President)
</td>
</tr>
<tr>
<td valign="top" width="124">
Kylie Rampa
</td>
<td valign="top" width="302">
Chief Executive Officer, Property, Lendlease (National Vice President)
</td>
</tr>
<tr>
<td valign="top" width="124">
Peter Allen
</td>
<td valign="top" width="302">
Chief Executive Officer, Scentre Group
</td>
</tr>
<tr>
<td valign="top" width="124">
Virginia Briggs
</td>
<td valign="top" width="302">
Partner, MinterEllison
</td>
</tr>
<tr>
<td valign="top" width="124">
Anastasia Clarke
</td>
<td valign="top" width="302">
Chief Financial Officer, The GPT Group
</td>
</tr>
<tr>
<td valign="top" width="124">
Stephen Conry
</td>
<td valign="top" width="302">
Chief Executive Officer – Australia, JLL
</td>
</tr>
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<td valign="top" width="124">
Carmel Hourigan
</td>
<td valign="top" width="302">
Global Head of Property, AMP Capital
</td>
</tr>
<tr>
<td valign="top" width="124">
Bob Johnston
</td>
<td valign="top" width="302">
Chief Executive Officer, The GPT Group
</td>
</tr>
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<td valign="top" width="124">
Laurence Lancini
</td>
<td valign="top" width="302">
Managing Director, Lancini Property and Development
</td>
</tr>
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<td valign="top" width="124">
Steve Maras
</td>
<td valign="top" width="302">
Group Managing Director and Chief Executive Officer, Maras Group
</td>
</tr>
<tr>
<td valign="top" width="124">
Louise Mason
</td>
<td valign="top" width="302">
Chief Operating Officer, AMP Capital
</td>
</tr>
<tr>
<td valign="top" width="124">
Angus McNaughton
</td>
<td valign="top" width="302">
Chief Executive Officer and Managing Director, Vicinity Centres
</td>
</tr>
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<td valign="top" width="124">
Tony Perrin
</td>
<td valign="top" width="302">
General Manager – Residential WA, Frasers Property
</td>
</tr>
<tr>
<td valign="top" width="124">
Alison Quinn
</td>
<td valign="top" width="302">
Chief Executive Officer, RetireAustralia
</td>
</tr>
<tr>
<td valign="top" width="124">
Darren Steinberg
</td>
<td valign="top" width="302">
Chief Executive Officer and Executive Director, Dexus
</td>
</tr>
<tr>
<td valign="top" width="124">
Roger Teale
</td>
<td valign="top" width="302">
Head of Markets – Victoria, Lendlease
</td>
</tr>
<tr>
<td valign="top" width="124">
Andrew Whitson
</td>
<td valign="top" width="302">
Group Executive and CEO Residential Development, Stockland
</td>
</tr>
</tbody></table>
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Susan Lloyd-Hurwitz elected new president of Property Council

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Business confidence in the WA property sector remains low according to the latest ANZ/Property Council Survey.
The ANZ/Property Council Survey index for WA moved down six points from 104 to 98 for the first quarter of 2017, returning to earlier levels following a slight jump for the final quarter of 2016.
The Australian property confidence index saw a slight increase for the December 2016 to the March 2017 quarter from 130 to 132.
“These results confirm what we know – that’s it’s a long, hard slog back after the end of the mining construction boom,” Property Council WA Executive Director Lino Iacomella said.
“There is however some room for optimism in the survey with retail and retirement living sectors bucking the trend with positive growth expectations.
"This can be explained by the growing focus on delivering diverse housing choices for our ageing population and continued investment in shopping centre redevelopment.
"As focus turns to the March State election, now is the opportune time for all the major parties to commit to a budget stimulus package which puts forward achievable and sensible policy measures which will empower the property industry."
 
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Low confidence in Western Australia property industry as election looms

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The NSW property industry is kicking off 2017 with nation leading levels of confidence, according to the latest ANZ/Property Council Survey released today.
“NSW had a strong 2016 and the next twelve months are looking positive with high expectations for growth, investment and hiring across the state,” Property Council NSW executive director Jane Fitzgerald said.
“NSW industry confidence leads the nation at 149 index points, up from 142 last quarter and is at near six year highs.
"Over the twelve months to March 2017, confidence in NSW is up 11 index points indicting a strong lead in to the new year.”
Staffing level expectations across the industry are also strong and is leading the nation this quarter which means the industry will continue to provide jobs for the state’s growing population.
“The survey shows that the NSW industry is strong across all sectors in terms of capital growth expectations with office, industrial, retail, retirement and hotel property sectors all expecting a strong 2017,” she said.
“But residential sentiment is softening across the nation and has been for the past 12 months or so which means we need to do all we can to strengthen the housing supply pipeline in NSW."
"We must cut stamp duty for families trying to get a foot in the property market, scrap the foreign investment tax and continue steps towards streamlining the planning system so that we can continue to build the NSW of the future."
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NSW property industry starts 2017 leading the nation in confidence

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The Property Council of Australia has welcomed comments from Treasurer Joe Hockey reported in the Weekend Australian that there is “no merit” in changing negative gearing for residential property.
"As the Government's analysis shows negative gearing is used overwhelmingly by people working in some of our most valued, but lower paid professions,” its chief executive Ken Morrison said.
“Negative gearing is a well-established, long-standing part of Australia's tax system and the people who use it most are everyday Australians looking to get ahead.
“This isn't some tax lurk for the wealthy, it is a legitimate and effective part of our taxation system that is used most by people earning under $80,000 per annum who become property investors through their own hard work.
“Any changes to negative gearing would hit middle Australia hardest and would take away one of the best ways most people have to save for their retirement.”
The Property Council of Australia says in 2012-13 almost 36,000 nurses and midwives, 10,415 emergency service workers, 53,855 teachers, 10,255 social workers and 90,000 clerical staff all earning around or less than $80,000 per annum declared a net rental loss.
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