Property confidence on the rise

Property confidence on the rise

Posted on Friday, April 19 2013 at 9:53 AM

Sentiment within Australia’s property industry has risen to an 18-month high, driven by increased confidence in the housing market and easing financing conditions, according to the latest Property Council-ANZ Property Industry Confidence Survey.

The confidence index for the June 2013 quarter jumped from 107 to 124,
the second consecutive quarter of growth.

The survey polled more than 3100 professionals from the property and
construction sector in all states and territories for their forward-looking
views.

“While consumer and business sentiment continues to be subdued, the bulk
of Australia’s property industry has shifted to a more positive outlook for the
future,” Property Council chief operating officer Ken Morrison says.

“Last year’s fence sitters have removed the splinters and made a clear
decision to walk on the sunny side of the street.

“This improved outlook is led by record confidence in the residential
sector and project funding expectations, which are now positive for the first
time.”

Key findings include:

–      
Overall
sentiment is up again: national property industry confidence has
increased for the second consecutive quarter, from 107 to 124 on the index.

–      
National
economic expectations now positive: national economic growth
expectations are now positive for the first time, increasing from 89 to 106.

–      
Residential
continues to build: expectations for house price growth increased 17
points on the index to a record of 124, continuing positive prospects for a
housing recovery.

–      
Residential
construction expectations continue upward trend: since the survey began in
2011, construction activity expectations have increased the most in the
residential sector.

–      
Funding
breakthrough: confidence in funding projects is now positive for the first time since
the survey began, increasing from 100 to 110.

–      
Spike in new
work expectations: Forward work expectations, which have been flat
over the last nine months, increased significantly, from 125 to 138 and are
consistent with national staffing level expectations.

–      
Big states lead
the way: New South Wales, Victoria, Western Australia and Queensland recorded
the largest increases in sentiment.

–      
Tick of
approval for Queensland Government: Queensland joins Western
Australian respondents as the only states who believe that their government is
doing a good job planning and managing growth.

ANZ chief economist Warren
Hogan says the outlook is positive.

“Not withstanding renewed
European concerns and rising tensions on the Korean peninsula, global economic
and market sentiment have improved markedly in 2013,” he says.

“Expansive monetary policy
settings have buoyed global liquidity and equity markets have rallied
strongly.”

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