Property Sector Remains Positive but Macro conditions cause decline in sentiment
The Property Industry over the past quarter has observed a decline in confidence following recent changes in the macro-economic environment. However, industry experts forecast positive work and workforce projections.
The ANZ/Property Council survey demonstrated that industry confidence levels dropped 19 index points nationally in the June 2022 quarter, yet remained in positive territory (118 index points) and slightly below the historical average of 124 index points. A score of 100 in the Confidence Index is considered neutral.
Property Council of Australia Chief Executive Ken Morrison said despite the decline in confidence caused by larger external factors such as inflation, skill shortages, and disrupted supply chains, the sector remained positive about its own work pipelines and staffing plans.
"What we’re seeing in this survey is a steep confidence dip in the broader outlook, yet specific firms remaining optimistic about their own business conditions,” Mr Morrison said.
ANZ Senior Economist Felicity Emmett said property sentiment has taken a hit on the back of two rate rises already delivered by the Reserve Bank, and the expectation of a steep increase in interest rates over the coming year.