Property investor confidence continues to rise with the Territory maintaining the highest confidence index across all states and territories. NT is one of the three resource-rich states – NT, WA and Qld – with the biggest positive gains and is now streets ahead of the national average.
The Property Council of Australia-ANZ Property Industry Confidence Survey shows sentiment in NT rose from an index score of 145 to 159 in the June quarter. This compares with a lift in the national index score of 107 to 113 and coincides with a less uncertain outlook for the global economy.
The survey polled more than 2300 professionals from the property and construction sector in all states and territories for their forward-looking views on the current quarter.
“Overall the industry is notably more confident as the acute concerns over global economic conditions soften,” says Property Council Northern Territory President, Brendan Dunn.
“However the regional story has become even more uneven, with confidence in the resource-rich states pulling further ahead, Victoria noticeably flat and Tasmania declining further.”
ANZ Head of Property Research, Paul Braddick, says the Survey result “reflects a positive economic outlook, with a number of large resource projects including the $33 billion Itchys gas project expected to provide a significant boost to the territory’s economy, demand for labour and household income.”
“These projects should underpin solid growth in economic activity, employment and property construction through 2012,” Mr Braddick says.
With the NT Budget to be handed down early next month, Mr Dunn reiterated the need for the Territory Government to accelerate its planning for urban expansion and lift spending on urgently needed infrastructure to accommodate economic and social growth.
“We are already experiencing increased enquiries from national and international players seeking to enter the Territory as a flow-on from the major projects already committed, and the banks appear to have a renewed interest in supporting development in the NT’s tourism, resource and property sectors,” Mr Dunn says.
“There is a great opportunity for the Territory to grow and prosper. The private sector is leading the charge and the Territory Government must accelerate its land use planning and infrastructure delivery to allow the NT to fulfil its undoubted potential,” Mr Dunn says.
Across Australia, survey respondents felt that state and territory governments must do better: half of the respondents disagreed with the proposition that their state or territory government was doing a good job in planning and managing growth, and only 17 percent agreed.
Mr Dunn was pleased, however, to see honourable mentions go to the WA and NT governments for their more positive scores.
“Clear planning strategies – including maintaining the nation’s most effective development consent processes while accommodating the anticipated future growth – and properly integrated infrastructure planning and delivery are essential in the time ahead,” Mr Dunn says.
Trevor Dalton, Acting Executive Director NT, Property Council of Australia
Ph: 0414 410 119
Paul Braddick, Head of Property Research, ANZ
Ph: 03 9273 5987