Canberra’s property professionals are reporting a more positive outlook for the ACT property sector despite continuing concerns about the Federal political environment and the outlook for economic growth in the Territory, according to a new study.
The Property Council of Australia-ANZ Property Industry Confidence Survey showed a shift in sentiment from 94 on the index for the March quarter to 101 for the June quarter.
A score of 100 on the index is considered neutral.
The survey polled more than 2300 professionals from the property and construction sector in all states and territories for their forward-looking views in the current quarter on topics including the business and political environment, the economy and employment intentions.
Property Council ACT Executive Director, Catherine Carter, says the latest Survey shows the ACT was the only state or territory that recorded a shift from overall negative sentiment in the March quarter to positive sentiment in the June quarter.
Confidence in house price growth has also shifted from a negative outlook to a positive outlook between the two quarters.
However, 43 percent of respondents say the Territory’s economic growth for the next quarter would be weaker or significantly weaker.
ANZ Head of Property Research, Paul Braddick, says ACT respondents to the survey had a “moderately balanced view of the property sector, with a confidence index of 101, reflecting an uncertain outlook for ACT employment with the existing budget pressures and a sharp unwinding of the boom in dwelling construction through 2011.”
“On balance, respondents expect construction activity in the commercial office sector to weaken over the next 12 months. In addition, a softening in underlying housing demand through slowing population growth presents further downside risks to the ACT residential property market and economic growth,” Mr Braddick says.
Respondents were also asked whether they believed the ACT Government was doing a good job planning and managing growth. 52% of respondents disagreed or strongly disagreed.
Ms Carter says the Survey findings reinforce the view that more should be done to develop a long term strategic plan and vision for Canberra.
“A good start would be the development of a 30-year infrastructure plan. This should be linked to the ACT’s land use strategy and population projections and would give greater certainty to both the property sector and the Canberra community,” Ms Carter says.
Catherine Carter, Executive Director ACT, Property Council of Australia
Ph: 0412 330 079
Paul Braddick, Head of Property Research, ANZ
Ph: 03 9273 5987