Investment confidence low, survey says
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.
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“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.
