The latest data shows that nationally confidence dipped one point over the previous quarter from 132 to 131 but remains buoyant, as a score of 100 is considered neutral.
Confidence levels in NSW have hit historic highs and lead the nation rising from 146 to 149 points. The NT and ACT also recorded strong gains up ten and eight points respectively to 132 and 119 on the index.
Victoria held steady, dropping only one point to 131, and is on par with the national average. Tasmania came in closely behind Victoria at 130, despite a seven-point drop.
The remaining states all recorded falls in confidence with Queensland down 14 points to 125, South Australia down four points to 110 and WA showing the lowest confidence levels of all states and territories, down eight points to 105.
Property Council of Australia Chief Executive Ken Morrison said despite mixed results around the country, confidence across the property sector remains in positive territory, driving jobs and economic growth.
“Confidence in the property sector remains high and importantly, forward work and staffing expectations are strong across all states and territories,” Mr Morrison said.
“This is despite the fact that the industry has become less confident overall about national and state economic growth expectations.
“This underlying confidence in the industry’s own work and staffing expectations is good news
for the rest of the economy which is relying on property to drive growth.
“It is important that governments at all levels commit to meaningful reform in the key areas of tax and planning to maintain growth in the property industry.
“Property and construction is a major employer and the nation’s single biggest contributor to tax revenues.
“It is vital that cumbersome planning systems are reformed and our most inefficient taxes abolished – with stamp duty topping the list – if the property industry is to continue to create jobs and prosperity for Australians.
“The survey results are revealing about the impact of political stability and policy frameworks on business confidence.”
ANZ Chief Economist Warren Hogan said the property sector continues to provide a green shoot for the broader Australian economic outlook.
“An optimistic outlook for the property sector is critical to supporting capital growth, employment and property construction in the near-term,” Mr Hogan said.
“The Australian economy continues to face the significant headwind of lower terms of trade and a sharp downturn in mining sector. In addition, a loss of momentum in the economy has been accompanied by deteriorating business confidence and ongoing lacklustre consumer confidence.
“Consequently, easing property sector confidence, particularly outside of NSW, bears close watching in the coming quarters.”
- Property industry confidence across the country decreased slightly over the quarter from 132 to 131 but remains high.
- NSW confidence increased to its highest level on record, while WA confidence decreased to its lowest point since the Survey began.
- Forward work plans and staffing levels remain positive and are at 146 and 120 index points respectively.