Confidence in the property market looks to be on the up, but caution may still be the best approach
It’s no secret that in recent times, the property market has been a bit up and down. Understandably, this has had the potential to put a dent in the confidence of not just property investors, but all those looking at the property market.
According to the latest ANZ/Property Council Survey though, property industry confidence has increased following the federal election outcome. The industry is still set to face some difficult times due to challenging economic factors though.
The national confidence index increased 13 index points for the quarter to 128 points. In doing so, the industry saw its second-largest quarterly increase since the survey’s inception, turning around a year-long decreasing trend since June 2018.
A score of 100 index points is considered neutral.
Respondents from all states and territories expect further cuts to interest rates in the next 12 months and for the first time in four years, respondents believed debt finance access would improve over the next 12 months.
House capital growth expectations are still negative despite sentiment improving noticeably for NSW and Victoria.
Opinion of the Federal Government soared in all states and territories, except the ACT, with national sentiment increasing positively by 18 index points.
Victoria for the September quarter has seen a 13-point increase, jumping from 114 to 127. However, the Property Council has cautioned that further leadership is required to ensure sufficient housing supply is able to meet the needs of all Victorians.
Queensland also saw an increase in confidence in the property industry. Currently sitting at 126, it has increased 11 points since the June quarter. This increase can also be attributed to the recent federal election putting to rest the fears of those in the property industry.
New South Wales was one of the better performers, increasing 17 points for the September quarter. This showcases the increasingly positive outlook for the NSW markets after an uncertain period for the past several years.