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The latest survey of sentiments among professionals in the property industry has revealed that confidence in the sector is still high, though concerns around housing affordability and supply are worsening.
According to ANZ/Property Council’s latest confidence index, confidence in the sector dropped 5 points to 137 nationally in the March quarter but remained elevated overall. A score of 100 is considered neutral, and while sentiments hit a record low at the start of the COVID-19 pandemic, they’ve maintained an above-average rating since the end of 2020.
Despite the small decline, Property Council of Australia chief executive Ken Morrison said stronger levels of confidence throughout the industry are indicative of the sector’s strength, which will buoy the economy going forward.
He noted that businesses were not expecting to struggle to find work in the months ahead.
“The industry’s forward work expectations have continued to lift this quarter and so have their staffing level expectations,” Mr Morrison said.
“This means that the property sector – which employs more Australians than any other sector – is set to hire more people and deliver more work, something both sides of politics should welcome as we begin the federal election campaign.
“Given the extent of turbulence the sector has suffered over the previous quarter this is a resilient outcome that stays above the historic average.”
But with the federal election looming, it appears that across the sector, workers are growing concerned that issues of housing affordability and supply aren’t being addressed at either a state or a federal level.
The research showed that more than 30 per cent of respondents listed supply and affordability as the greatest issue facing the federal government, while 35 per cent said that it was the biggest problem for state governments to address
This issue has ranked highest in property professionals’ concerns over the past year, but the last three months have seen it increase significantly as a worry. As of 12 months ago, it was ranked as the largest priority for roughly 25 per cent of property professionals at both a state and federal level.
Mr Morrison described this attitude towards the cost and availability of housing as the “strongest response in the history of the survey”.
He commented that it aligned with other research conducted by the council, which found that almost 70 per cent of voters fear younger people will never be able to buy a home in Australia.
Mr Morrison also noted that environmental sustainability appeared to be on the rise as a priority in the property sector.
“Also on the agenda for our members is ESG, with cities and infrastructure delivery, alongside economic management, remaining key issues,” he said.
Environmental, social and governance (ESG) came out firmly in second place as concern for the property industry on both a state and federal level.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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