Building

Victorian industry’s confidence cools amid supply concerns

The latest ANZ/Property Council Survey reveals that confidence in the Victorian property industry has cooled, with a drop of six index points in the September 2018 quarter.

The Property Council’s Victorian Deputy Executive Director, Linda Allison, said that the shift in state confidence reflects the uncertainty affecting the pipeline of new commercial and residential development in Melbourne’s CBD and surrounding areas.

“Melbourne’s CBD is the engine room of the Victorian economy,” said Ms Allison.

“It is important to maintain continuity in the construction pipeline to meet future population and employment projections,” Ms Allison noted.

There was also a sharp decline in the availability of finance, dropping from -4 to -24 index points.

Forward work expectations in Victoria dipped eight index points for the September 2018 quarter to 46 points; in line with the national trend.

The ANZ/Property Council Survey is the nation’s leading measure of confidence in the property industry and polled 929 respondents for their forward-looking views.

The overall confidence index score for Australia fell from 143 to 138 points over the September 2018 quarter. A score of 100 is considered neutral.

Source: Property Council of Australia