Property industry confidence is bouncing back after three quarters of sitting in negative territory according to the latest results from the ANZ/Property Council Survey.
The national industry confidence score for the December 2020 quarter surged by 41 index points to 123 points, returning to the same level prior to the onset of the COVID-19 pandemic. This was the biggest quarterly index increase in the survey’s history.
All states and territories welcomed strong sentiment across the board to end a turbulent year on a high.
100 on the index scale is considered neutral. More than 100 is positive; less than 100 is negative confidence.
- National confidence levels increased by 41 index points to 123 for the December 2020 quarter – the biggest quarterly increase on record and returning the industry confidence index to the historical survey average of 123.
- National forward work expectations improved by 36 index points on the previous quarter, from -5 to 31 index points.
- National staffing level expectations returned to positive, increasing by 17 index points to 12.
- National economic growth expectations are back in positive territory for the first time in six quarters at 13 index points, compared to -52 index points in the previous quarter.
- 70 per cent of respondents believe the future impact of COVID-19 on their business will improve over the next three months, up by 19 per cent on the previous survey. Only 7 per cent believe impacts will get worse. Sentiment is strongest in Victoria with 76 per cent expecting things to improve.
- 52 per cent of respondents believe Hotels, Tourism and Leisure sector will be most severely impacted by COVID-19, followed by commercial office (30 per cent) and shopping centres (11 per cent).
- 79 per cent of developers operating in the residential sector believe the HomeBuilder grant will have a positive impact on their business over the next quarter.
- 21 per cent of survey respondents have accessed the Federal Government’s JobKeeper program compared to 47 per cent in the previous survey.
There were 837 respondents to the online survey between 16 November and 2 December 2020.
To view select ANZ/Property Council Survey historical data series, visit the Property Council’s Data Room
To find out more about the ANZ/Property Council Survey and our Supporting Sponsor RCP, visit: www.propertycouncil.com.au/confidence