ACT property industry sentiment has shifted from positive to negative in the space of just three months and is now the lowest in the country, according to new research.
The Property Council of Australia-ANZ Property Industry Confidence Survey showed sentiment in the ACT shifted from 101 on the index for the June quarter to 85 for the September quarter.
The result was the biggest shift downwards for any state or territory over the period. The index score for all of Australia was 106.
The Property Industry Confidence Survey polled more than 3100 professionals from the property and construction sector in all states and territories for their forward-looking views.
Key results from the Survey for the ACT are:
staffing levels have been accelerating downward since the inception of the series. The number of ACT respondents indicating they would hire more staff decreased to a 101on the index in the September quarter, down from 108 in the June quarter
forward work expectations are the worst in the country. The net balance score for forward work expectations dropped from 116 on the index in the June quarter to 101 in the September quarter
state economic growth expectations have worsened. The net balance score for this measure shifted downward to 68 for the September quarter, down from 83 for the previous quarter
price growth expectations for the office, retail and industrial sectors have worsened over the period, and are the lowest for Australia
planned construction activity has moved from positive to negative for the quarter, and the outlook for planned activity for the office, retail, industrial and residential sectors are the lowest in Australia
Property Council ACT Executive Director, Catherine Carter, says while the survey results were cause for concern, results from previous polls in the series had predicted the weaker results for the September quarter.
She says the survey found ACT property and construction professionals believe the federal political environment to be the biggest impediment to business decision-making over the next 12 months.
ANZ Head of Property Research, Paul Braddick, says the forecast for the ACT economy is soft.
“With existing budget pressures and a sharp unwinding of the boom in dwelling construction through 2011 weighing on the ACT economic outlook, respondents revealed the weakest confidence since the index was first reported in the December quarter 2011,” Mr Braddick says.
“In addition, a moderate softening in underlying housing demand in 2012 - through slowing population growth - presents further downside risks to the ACT residential property market and economic growth.”
Catherine Carter, Executive Director ACT, Property Council of Australia
Ph: 0412 330 079
Paul Braddick, Head of Property Research, ANZ
Ph: 03 8655 3022