Sydney leads capital city house price growth
After a tumultuous year, most capital cities are now rebounding as vendor confidence continues to improve. ...
While confidence continues to climb across a majority of the nation, Victoria is lagging behind as it struggles to recover from the impacts of COVID-19.
In the latest ANZ/Property Council of Australia industry confidence survey, Victoria scored a slim 124 index points for the March 2021 quarter – below the national average of 142. A score of 100 is considered neutral.
In contrast, all other states and territories were either at par or higher than the national average, with Western Australia at 157 index points, NSW and the ACT at 145, Queensland at 144 and South Australia at 142.
Conversely, economic growth expectations in Victoria matched the growth expectations across the nation at 13.2 index points.
But despite low state growth expectations, Property Council’s Victorian executive director, Danni Hunter, said the medium-term outlook has started to turn positive, with Victorians now optimistic about the improvement of the COVID-19 situation over the next three months.
In fact, the property industry has high expectations for the state’s economic growth prospects, with the economic growth index at its highest level in three years.
The state also recorded an improvement in capital growth expectations across all sectors for the next 12 months, with the exception of the hotel sector.
As such, Ms Hunter urged the government and the private sector to leverage the positive momentum in order to stimulate the state’s economic recovery.
“Government should partner with the private sector in a concerted effort to encourage workers back into Melbourne’s CBD, which will generate growth across the local and state economy, by stimulating consumer activity.
“Melbourne’s CBD represents 24 per cent of Victoria's economy and 7 per cent of Australia’s economy. Every one office worker generates enough activity to support the employment of another five people in our CBDs.
“It is vital for Melbourne to resume to its pre-COVID glory,” the executive director commented.
Apart from reviving the CBD, Ms Hunter also reiterated the importance of supporting the housing and construction industry to increase dwelling supply and improve jobs growth.
“Nationally, housing supply and affordability were reported as being the number one critical issue for state governments to address.
“It is vital the Victorian government works with industry to increase housing supply, maintain downward pressure on affordability and lock in Victorian jobs in the sector,” she concluded.
The ANZ/Property Council Survey was conducted between 15 and 30 March 2021, with over 800 respondents drawn from across the property industry, including developers, managers, agents and service providers.