CANBERRA’S property industry confidence has taken a dive across the residential and commercial sectors following the federal election, according to the latest Property Council survey.

The quarterly survey, which tracks sentiment from across the property industry, shows that confidence ratings fell by 13 index points to 123.

Confidence ratings isn’t the only thing that’s taken a dive and the survey shows sentiment towards the performance of the ACT government decreased from 19.7 index points (record high sentiment in the June 2019 quarter) to 5.6 for the September 2019 quarter.

Another dive, a 19 index point drop to 26, in forward work schedules in the ACT was also highlighted in the survey – the lowest level in five years (since September 2014).

Sentiment has dropped too – 26.6 index points from 59 (down 32.4 index points), which comes on the back of record high staffing level expectations last quarter.

And, the ACT continues to expect a decrease in national economic growth, now at -1.6 index points (up from -9.9 in the June quarter). It is the only jurisdiction to record negative sentiment.

The Property Council’s ACT executive director, Adina Cirson says the survey results highlight the importance of good policy and planning to sustain investment and jobs in the ACT property sector.

“The survey results, collected post the federal election, perhaps reflects the concern the sector has about foreshadowed cuts to the public service – announced as being in the order of $1.5billion to pay for its $1.4billion in election promises, a move that could reduce jobs by 3000,” she says.

“The ACT Budget included some welcome measures to speed up the DA approval process through additional staffing resources and changes to the LVC regime which are positive steps in planning for and supporting our growing city.

“However commercial rates went up by 6 per cent and we await further response from the government on the recommended changes noted through the recent commercial rates inquiry.

“Canberra and the region also need to see greater commitment on investing our infrastructure priorities by the Commonwealth Government, including support for the next stages of the Light Rail network.

“Canberra’s growth has been just as significant as that experienced in our major capitals, but has been mostly overlooked by the Commonwealth.”

But overall Ms Cirson says the confidence rating remains positive, saying a score of 100 is considered neutral.

The survey also found:

• Respondents from the ACT expected a cut in interest rates declining from 3.4 to -11.2 index points over the quarter (the RBA announced a cut to interest rates during the survey period).
• For the first time in four years, the ACT expects debt finance to be more accessible increasing from -15.9 to 10.2 index points over the quarter. All jurisdictions recorded similar expectations.
• Expectations for residential capital growth fell into negative territory to -7.8 index points for house price expectations, down from 2.2 index points in the June quarter.
• Office capital growth expectations for the ACT decreased by 13.6 index points to 13.1 over the quarter.
• Industrial capital growth expectations decreased from 10.1 to 5.1 index points over the quarter. It is the lowest level of sentiment across all jurisdictions.
• Retail capital growth expectations decreased by 12.3 index points to -8.3 over the September quarter.
• Capital growth expectations for retirement living increased from 36 to 40.5 index points over the quarter. Along with SA, the ACT recorded the highest level of sentiment across all jurisdictions.
• Sentiment towards hotel capital growth decreased by 16.4 index points to 4.9 over the September quarter.