The effects of the coronavirus pandemic has well and truly hit the property sector with confidence in the Australian property industry plummeting to its lowest level on record according to the ANZ/Property Council Survey for the June 2020 quarter.
National industry confidence levels have plunged by 61 index points from the previous quarter to 62 index points for the June 2020 quarter. A score of 100 on the index scale is considered neutral.
Highlights from the latest ANZ/Property Council Survey are below:
- National forward work schedules decreased from 36 to -22 over the June 2020 quarter. All states and territories recorded negative expectations for the first time since the Survey’s inception in 2011.
- National staffing level expectations decreased by 31 index points to -16 over the June 2020 quarter. All states and territories tracked recorded negative expectations for the first time since the Survey’s inception in 2011.
- National economic growth expectations remain in negative territory at - 83 index points in the June 2020 quarter.
- State economic growth is expected to significantly decrease with all markets recording fairly similar results. The results ranged from SA (-73) to NSW (-79)
- 66% of respondents are currently experiencing a moderate to serious impact on their businesses from the coronavirus outbreak. This number is set to increase to 87% over the next three months.
- 74% of respondents believed the Hotels, Tourism and Leisure sector will be the most severely impacted by the Coronavirus outbreak over the next three months. Followed by shopping centres (15%), commercial office (5%), retirement living (3%), residential (3%) and industrial (1%).
- 67% believed the coronavirus outbreak is having a moderate impact on their current project construction schedules. 18% of respondents believed there will be no impact on their current project construction schedules while 15% believed their current project construction schedules would be seriously impacted.