Sydney leads capital city house price growth
After a tumultuous year, most capital cities are now rebounding as vendor confidence continues to improve. ...
Capital growth expectations for the industrial and residential sectors have reached record highs across NSW, a new survey has revealed.
The latest quarterly ANZ/Property Council sentiment survey for March 2021 placed the overall property industry sentiment in NSW at 145 index points, up from 123 points in the December 2020 quarter. A score of 100 is considered neutral.
This result is higher than the national average at 142 points, and the second highest national score, just behind Western Australia at 157 points.
The industrial and residential sectors led the improvement in positive sentiment, with both witnessing an uptick in capital growth expectations, according to NSW executive director Jane Fitzgerald.
Residential capital growth expectations recorded its highest rating of 72 index points – more than doubling the December 2020 result of 30.1.
“This is excellent news for anyone who already owns a home but means that the state government needs a renewed focus on housing supply if we are to stave off locking the next generation out of home ownership,” Ms Fitzgerald said.
“This quarter’s survey shows how concerned the industry is about housing supply and affordability, with these now the key issue for the NSW state government to address.”
Meanwhile, the state’s expected industrial capital growth over the coming 12 months is sitting at 47.1 on the index, up 11.5 points from the December 2020 quarter.
According to Ms Fitzgerald, the pandemic has ultimately put the industrial sector at the forefront, with Australians now heavily reliant on delivered goods and services.
Looking ahead, the executive director said that she holds optimism for the commercial office sector, where growth expectations have likewise shown a strong recovery.
Despite the slow revival of CBD activity, commercial office capital growth expectations index was up from a negative 45.2 points in December 2020 to -14.6 in March 2021 – a rise of 30.6 points.
“While there is clearly a long way to go, this turnaround in confidence is reassuring,” Ms Fitzgerald concluded.