Optimism in the NSW property sector has dropped, with expectations for future work schedules and employment declining, according to new research.
The results are revealed in the latest quarterly Property Council of Australia-ANZ Property Industry Confidence Survey, which polled more than 3100 professionals from the property and construction sector in all states and territories for their forward-looking views.
The survey for the September quarter showed the confidence index slipped from 113 to 106 for NSW respondents.
“The good news for NSW is confidence here tops all jurisdictions outside the resource states,” says Glenn Byres, Property Council NSW Executive Director.
“We have, however, followed the national fall in confidence – and it is now hurting expectations around future employment prospects and work schedules.”
“Predictions around hiring intentions have fallen for four successive quarters, and attitudes for forward work schedules have followed.”
“They both remain marginally in the positive but the urgency of policy reforms to support the sector is paramount.”
“We hope a proposed overhaul of the State’s planning laws continues to head down a bold path and gives the industry the signal it needs to invest capital in NSW.”
ANZ Head of Property Research, Paul Braddick, says NSW property market confidence should return if the global economy does not further decline, and the residential property market should improve.
“While NSW property market confidence moderated on increased global economic uncertainty, in line with national trends, moderately positive perceptions of NSW property continue to be driven by tightening fundamentals in both residential and commercial markets, driving rents and yields higher,” Mr Braddick says.
“Looking through the temporary impact of changes to NSW first home buyer policy, first home buyer and investor residential sales activity should continue to increase through the second half of 2012 on the back of improved housing affordability, tight market conditions and increasing rents.”
“As a result, prices, capital values and property market confidence in NSW should edge gradually higher through the second half of 2012 in the absence of further deterioration in the global economy.”
Glenn Byres, Executive Director NSW, Property Council of Australia
Ph: 0419 695 435
Paul Braddick, Head of Property Research, ANZ
Ph: 03 8655 3022