Confidence in the Australian property industry has dropped to its lowest level in more than five years.
Overall confidence dropped to 123, falling 15 index points over the past 12 months.
While there are wide range of factors when it comes to economic performance, here are four key drivers for the ANZ/Property Council Survey results:
Forward work and staffing levels
Future workload expectations have fallen in all states and the ACT. While staffing level expectations across the nation increased marginally by one index point, future employment prospects will be one to watch over the next 12 months.
Following almost three years of positive sentiment towards national economic growth, the index has remained in negative territory for the second consecutive quarter. Interestingly, Australia is currently in its 27th year of uninterrupted economic growth according to the ABS.
Housing capital growth and construction activity
House price expectations fell to -23 index points, the lowest level since the survey commenced in 2011. In terms of residential construction, expectations have shown the sharpest fall across major sectors, dropping to a record low of -7 index points. Construction expectations have declined by 21 index points over the past 12 months.
Debt finance availability
Perceptions on credit availability continue to tighten having fallen by 20 index points over the past 12 months; now at -27 on the index.