A survey conducted by the Property Council of Australia and ANZ Bank indicates that confidence in Australia’s property sector remains high, despite a drop of 5 points on the ‘Confidence Index’ for the month of March.

The Index remains in positive territory despite the drop from 142 to 137, with a score of 100 considered neutral. Property Council CEO says the strong level of confidence bodes well for the economy.

“The industry’s forward work expectations have continued to lift this quarter and so have their staffing level expectations,” he says.

“This means that the property sector – which employs more Australians than any other sector – is set to hire more people and deliver more work, something both sides of politics should welcome as we begin the federal election campaign.

"Given the extent of turbulence the sector has suffered over the previous quarter this is a resilient outcome that stays above the historic average."

The survey was conducted between March 15 and 30, with future work expectations lifted in every state and territory over the quarter with the exception of the ACT. South Australia and Western Australia both saw increases of eight index points, with job creation expectations increasing in Queensland from 20 to 32, Victoria (19 to 35) and South Australia (30 to 42). 

60 percent of survey respondents believe the effects of the pandemic will lessen over the next three months. Morrison says the survey identifies key issues of survey respondents in the lead up to the federal election.

“Housing supply and affordability topped the list of major issues to be addressed by a federal government over the next 12 months, with its strongest response in the history of the survey,” he says.

“Research from the Property Council of Australia recently revealed almost 70 percent of voters fear younger people will never be able to buy a home in this country, with 90 percent of those trying to enter the market indicating it was the most important issue in deciding their vote in the May federal election.

“Also on the agenda for our members is ESG, with cities and infrastructure delivery, alongside economic management, remaining key issues.”

ANZ Senior Economist Felicity Emmett says commercial property confidence has grown in the quarter, which she attributed to improving sentiment in the industrial, retail, and tourist sectors. She additionally notes that residential property confidence has fallen, but still remains stronger than it was pre-pandemic.

“Industrial property sentiment continues to power ahead, with the strong construction outlook backed up by the sharp lift in building approvals over the last few years,” she says.

“The opening of the international borders has buoyed tourism sentiment, lifting it to its highest level since 2018.

“While retail and office property sentiment remain in positive territory, they face headwinds, particularly office property, where sentiment declined in the March survey.”

To read the survey in full, click here.