Unlocking confidence in Victoria’s property industry

victoria rural property town stock image

The latest ANZ/Property Council Survey reveals that the Victorian property industry’s confidence levels have slowed, with a change of fifteen index points to 126 for the December 2018 quarter. The overall national confidence contracted from 138 to 126 points over the December 2018 quarter. A score of 100 is considered neutral.

The Property Council’s Victorian Executive Director, Cressida Wall, said that the modest confidence figures serve as a reminder of the need for long-term thinking, certainty and stability across the political divide.

“We are certainly seeing a softening in market conditions, with a number of challenges on the horizon.”

“Industry is alive to the uncertainty brought about by forthcoming state and federal elections, and we continue to call on all parties to support confidence and certainty, which provide a stable platform for economic activity,” said Ms Wall.

“Victoria is experiencing record infrastructure investment, which is necessary to successfully support our growth, however, this results in materials and labour cost pressures right across the industry.”

Forward work and staffing level expectations have also reduced, in line with the overall surveyed sentiment for Victoria. Furthermore, expectations for price growth in the residential sector have eased, moving from -11.0 index points to -33.5 for the December 2018 quarter.

“The property industry is watching the impact of the Financial Services Royal Commission carefully and the interim report has reinforced expectations that banks will grow more cautious in lending,” noted Ms Wall.

Source: Property Council of Australia