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Confidence in the NSW property industry is slowly turning positive, a new survey has revealed.
The Property Council of Australia-ANZ Property Industry Confidence Survey shows the NSW confidence index rose from 106 for the September quarter to 107 for the December quarter (where 100 is considered neutral).
The survey polled more than 3500 professionals from the property and construction sector in all states and territories, including 1107 from NSW, for their forward-looking views.
“The survey points to a gradual turn-around in confidence in NSW, as the acute concerns over global economic conditions soften,” says Property Council NSW Executive Director, Glenn Byres.
Over the next 12 months, 86 percent of respondents expect their forward work schedule to stay the same or increase, while 79 percent thought that staff levels would stay the same or increase.
Commercial office remains the strongest asset class, with 81 percent expecting capital values to remain the same or increase. This goes against the national trend.
Residential property in NSW appears to be on the cusp of a recovery, with confidence moving from negative to positive (from 95 to 106 on the index). A total of 81 percent of respondents predict values will stay the same or increase in the coming year, up from 68 percent last quarter.
ANZ Head of Property Research, Paul Braddick, says NSW property industry confidence was third only to NT and WA across all states and territories, and continues to be supported by tightening property market demand/supply fundamentals in both residential and commercial markets.
"Combined with lower mortgage rates improving housing affordability, lower residential rental vacancy rates are expected to drive rents and yields higher in the year ahead, attracting first home buyer and investor residential sales activity," Mr Braddick says.
"As a result, house prices, commercial property capital values and property market confidence in NSW should increase through the remainder of 2012, in the absence of further deterioration in the global economy."
However, the survey revealed persistent concerns about national growth, with 83 percent of NSW respondents expecting Australia’s economic growth would remain the same or weaken. Like the previous quarter, domestic and global economic conditions remain the chief concern that will affect business decision making over the next 12 months.
While the NSW Government is in the process of ambitious reforms of planning, transport, infrastructure and local government, almost half (46 percent) of all respondents thought the Government was not doing a good job in planning and managing growth.
“The Government’s reform agenda still has a long way to run and industry is watching with keen interest," Mr Byres says. "We support the general direction of many reforms but detail matters, and the industry is looking to Government for boldness and certainty."
“The NSW Government should take care to keep building momentum and harness the sector’s confidence.”
Media contact:
Glenn Byres, Executive Director NSW, Property Council of Australia
Ph: 0419 695 435
Paul Braddick, Head of Property Research, ANZ
Ph: 03 9273 5987
propertyoz.com.au/confidence
The Hunter’s property industry has a positive outlook for the short to medium term, according to new research.
The Property Council of Australia-ANZ Property Industry Confidence Survey found 33.7 percent of respondents in The Hunter felt their local economic conditions would improve over the next 12 months, while 41.3 percent believed it would remain the same.
Hunter professionals have a more positive outlook than Sydneysiders, only 22.5 percent of which believe Sydney’s economy would improve in the coming year.
The Survey polled more than 3500 property industry professionals across the nation for their forward-looking views.
Hunter property professionals’ outlook is even more positive about forward work schedules and staffing levels.
A total of 63.0 percent expect their forward work schedules to increase over the next 12 months, while 16.0 percent expect it to remain the same.
A total of 34.6 percent of respondents expect staffing levels over the next 12 months to increase, while 49.4 percent expect no change.
Property Council Regional Director, Andrew Fletcher, says Survey respondents from The Hunter felt domestic economic conditions were the biggest impediments influencing business decision-making for the coming year (58.0 percent).
Other significant impediments were followed by infrastructure planning (44.4 percent), the availability of debt finance (40.7 percent) and planning controls (39.5 percent).
“After losing some economic confidence over the past six months, the region has found its mojo again,” Mr Fletcher says.
“There is no doubt our local economy is somewhat insulated by a strong resources sector, but confidence could evaporate without further planning reform and critical infrastructure spending.”
ANZ Head of Property Research, Paul Braddick, says overall NSW property industry confidence was third only to NT and WA across all states and territories, and continues to be supported by tightening property market demand/supply fundamentals in both residential and commercial markets.
"Combined with lower mortgage rates improving housing affordability, lower residential rental vacancy rates are expected to drive rents and yields higher in the year ahead, attracting first home buyer and investor residential sales activity," Mr Braddick says.
"As a result, house prices, commercial property capital values and property market confidence in NSW should increase through the remainder of 2012, in the absence of further deterioration in the global economy."
Mr Fletcher says the Survey results demonstrated the hope created by a change of state government was starting to ease.
“We support many of the reform directions being pursued by the O’Farrell Government. However, industry is still looking for follow through, and this is reflected in the fact 59.3 percent of Survey respondents in The Hunter believe the State Government is not doing a good job of planning and managing growth.”
“Creating an attractive investment climate is dependent on certainty, and the NSW Government has the levers at hand.”
“Completing the Regional Growth Plan and releasing an Urban Renewal Policy, which sets out an unambiguous vision for connecting the Newcastle CBD to the waterfront, must be high priorities.”
"The property sector is critical to the Hunter’s prosperity, as it provides 12 percent of all jobs and directly contributes $3.6 billion to regional economic growth.”
Media contact:
Andrew Fetcher, NSW Regional Director - Hunter, Property Council of Australia
Ph: 0407 410 017
Paul Braddick, Head of Property Research, ANZ
Ph: 03 9273 5987
Property professionals in The Illawarra are more confident about the local industry’s future prospects than those in Sydney or The Hunter, according to new research.
The Property Council of Australia-ANZ Property Industry Confidence Survey found 34.0 percent of respondents from The Illawarra believe local economic conditions will improve over the next 12 months. This compares to 33.7 percent for The Hunter and 22.5 percent for Sydney.
Only 23.4 percent of Illawarra respondents believe local economic conditions will deteriorate, compared to 25.0 percent in The Hunter and 16.7 percent for Sydney.
The survey polled more than 3500 professionals from the property and construction sector in all states and territories, including 1107 from NSW, for their forward-looking views.
NSW property professionals are, overall, more confident now than they were three months ago. The overall NSW survey confidence index rose from 106 for the September quarter to 107 for the December quarter (where 100 is considered neutral).
Illawarra respondents are optimistic about the future prospects for growth in their local property industry.
A total of 63.4 percent of respondents believe their forward work schedule will increase over the next 12 months, and only 9.8 percent believe it would decrease.
The survey also revealed positive signs for staffing levels, with 31.7 percent of respondents expecting to increase their workforce in the next 12 months, and only 12.2 percent expecting to downsize.
“It is clear that property professionals in the region are buoyed by the revitalisation works that have started in Wollongong’s city centre and new projects by GPT, Stockland and the University of Wollongong,” says Property Council Illawarra Chapter Chair David Laing.
“The Property Industry Confidence Survey results show locals are, in fact, more concerned about national economic conditions, consumer demand and global economic conditions.”
ANZ Head of Property Research, Paul Braddick, says overall NSW property industry confidence was third only to NT and WA across all states and territories, and continues to be supported by tightening property market demand/supply fundamentals in both residential and commercial markets.
"Combined with lower mortgage rates improving housing affordability, lower residential rental vacancy rates are expected to drive rents and yields higher in the year ahead, attracting first home buyer and investor residential sales activity," Mr Braddick says.
"As a result, house prices, commercial property capital values and property market confidence in NSW should increase through the remainder of 2012, in the absence of further deterioration in the global economy."
Mr Laing says despite the effects of the steel industry decline, the property industry in The Illawarra is growing because of the diversity of its economy, its competitive property price points compared to nearby Sydney, and liveability factors.
“The property sector is growing in confidence in this region because big projects are proceeding. We’re just hoping these create a domino effect to attract even further investment in our sector to grow more job opportunities throughout the region,” Mr Laing says.
“Property has always been a strength of the local economy and there are still many opportunities to contribute to the smart growth of this community.”
Media contact:
David Laing, Chair - Illawarra Chapter, Property Council of Australia
Ph: 0419 284 626
Paul Braddick, Head of Property Research, ANZ
Ph: 03 9273 5987
propertyoz.com.au/confidence
