Property market confidence highest in two years
Confidence in the Australian property market is high heading into 2017.
The latest quarterly ANZ Property Council Survey shows confidence in the property market at a two-year high. The survey found that confidence among industry professionals rose two points to 130 for the quarter. Any score above 100 indicates an optimistic outlook by survey respondents.
“This is good news to start 2017. This data says that the industry is optimistic about the coming quarter. We see good expectations in terms of economic growth, capital values and forward work schedules,” Property Council CEO Ken Morrison said.
Morrison conceded, however, that confidence varied from state to state.
“We see in NSW a strong surge in confidence underpinned by expectations for economic growth, housing, forward work expectations as well as confidence in the government itself. Likewise, we are seeing consistent and strong growth expectations in Victoria and the ACT. We are also seeing a pickup in confidence in South Australia and Queensland. Western Australia is still coming to terms with the end of the mining boom, and confidence did slip back into negative territory,” he said.
ANZ chief economist Richard Yetsenga said much of the improved outlook for the property market came from the residential segment.
“Coupled with the returning presence of investors, it appears that demand for housing is reasonably steady at an elevated level,” he said.