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New data shows that industry sentiment levels in New South Wales have levelled out while that of other states have grown in confidence.
The latest ANZ/Property Council Survey showed that NSW was now in fact towards the back of the pack when it comes to confidence in the market.
The NSW property industry confidence index had a slight rise to 141 index points, up by 1 point from 140 last quarter, but in the last 12 months, sentiment has dropped by 4 index points.
NSW is now only ahead of Queensland on the survey’s confidence index and below the national average by 2 points.
Housing capital growth expectations continue to fall, now sitting at negative 11.9 index points, which indicates a softening market due to tighter debt financing and lower price growth.
Property Council NSW executive director Jane Fitzgerald said that the areas of growth had changed, and NSW was no longer the leader.
“We are seeing a level of industry sentiment in NSW and other states have caught up, [so] we are no longer the clear leader. NSW is coming off a very high peak and consumer-driven sectors such as residential and retail are contracting.
“Hotel and industrial sector capital growth expectations are leading the nation, and these sectors, along with retirement, are now where we are seeing higher expectations of growth.”
The survey showed growth for the state’s economic growth, but the state government performance had dropped to its lowest level since June 2014.
“The NSW government performance index is also at its lowest point since June 2014. The release and implementation of key planning reforms over the next six months, including important housing codes and a strong state budget should contribute to halting this slide,” Ms Fitzgerald said.
Open investment from the government is the best way to continue NSW’s strong economy, according to Ms Fitzgerald.
“As other east coast states compete for investment, a stable open investment environment is required in NSW to ensure our good economic fortunes continue,” the executive director said.
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