Australia is set for a jobs boom in property and construction over the next twelve months as the home building recovery continues to gather momentum and commercial building picks up, a leading survey of property industry executives suggests.
In the latest Property Council of Australia-ANZ Property Industry Confidence Survey (June quarter), the index denoting staffing level expectations for the next twelve months rose above + 20 for the first time since the survey began in 2009 (any reading above 0.0 indicates property industry executives expect to increase headcount over the next twelve months), as hiring sentiment surged across New South Wales, Victoria and Western Australia amid growing confidence regarding forward work schedules and increasing levels of planned construction activity.
Expectations for all three aforementioned categories have now risen for four consecutive quarters.
Meanwhile, capital growth is expected across all property sectors over the next year, with residential and retirement living being the most favoured areas.
Overall, industry confidence moderated during the quarter but remains at healthy levels of 140 (see chart – any reading above 100 indicates net optimism about prospects for the next twelve months).
Property Council of Australia Chief Executive Officer Peter Verwer welcomed the latest result but challenged the government to provide a clearer path for the economy.
“On the eve of the Abbott Government’s first budget, the property and construction industry remains positive but cautious” Verwer said.
“Over the past 12 months, the property industry has sustained Australia’s economy in contrast to falling manufacturing and mining investment – but investors need certainty if they are to continue to drive economic growth”.
ANZ Chief Economist Warren Hogan said sentiment within the sector was being underpinned by rising house prices but cautioned this is unlikely to be sustained as consumer confidence is weighed down by job security concerns and slowing wages growth.