ACT property sector is gloomy

Property, housing, belconnen, house, houses, building, home

THE Property Council/ANZ Property Industry Confidence Survey’s leading index for the September quarter of 2014 shows a downward shift in sentiment by two points to 101, which is the lowest level of confidence in the nation. A score of 100 points is considered neutral.

The quarterly survey polled approximately 2,300 property industry professionals across all Australian states and territories on their forward-looking views regarding the business and political environment, the economy, employment intentions and other factors.

Property Council ACT Executive Director, Catherine Carter, says the latest survey shows ACT property industry sentiment can likely be attributed to a slow-down in construction activity across the Territory, largely as a result of cut backs in Commonwealth Government spending.

“However, at the same time as slipping confidence in the ACT property sector, confidence in the ACT Government has lifted from -12 to -1 (or 88 to 99) points. While still in neutral territory, the lift in confidence can likely be attributed to a positive response to the ACT Government’s property stimulus package and forward infrastructure program,” Ms Carter said.

ANZ Senior Property Analyst, David Cannington, says ACT property industry confidence declined in the September quarter to be the lowest across all states and territories (at 101), largely reflecting a soft outlook for state economic growth, property construction and property sector employment.

“While the ACT economy has proven to be quite resilient, confidence has likely been weighed down by the Commonwealth Government’s fiscal repair and the likely associated public sector job losses.

“In addition, ACT residential capital growth expectations are subdued compared to other states and territories, following a soft office property outlook and the slowdown from the recent housing construction boom.”

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