Confidence in the property investment market is largely “in the doldrums”, according to a new Property Industry Confidence Survey.
The Property Council of Australia/ANZ confidence index reveals that Western Australia, the Northern Territory and, marginally, New South Wales are the only states not to have demonstrated low confidence.
“Insufficient home building has seen the NSW housing market balance deteriorate sharply in recent years. This is reflected in near-record low rental vacancies in Sydney and a sharp acceleration of rents,” ANZ’s chief economist, Warren Hogan said.
“After languishing for many years, the survey suggests Sydney’s housing markets have the opportunity to move to a period of ‘outperformance’.”
Tasmania was found to be the most depressed market, while Victoria’s and South Australia’s results saw a rise in the perception that past economic growth is topping out.
Nationally, residential property views are mixed, with solid returns expected due to a shortage of supply and weak expectations for new building activity.
Property Council Chief Executive Peter Verwer said the survey pointed to a lacklustre outlook for the next quarter .
“In fact, a common theme of the survey is that poor political leadership at all levels is compounding economic uncertainties and investment risks,” Mr Verwer said.