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With buyer hopes buoyed by firming economic factors, industry sentiment has similarly grown more bullish in most regions, just not in Victoria.
According to the latest industry survey conducted by the Property Council of Australia and construction management software firm Procore, the recent temperature check on the industry showed a significant movement in positivity among property professionals, with the Confidence Index rising 6 points to 120 points – a score of 100 being considered neutral.
Victoria was the only state to experience a decline in confidence levels, falling to sit well below the national average at 104 points.
The survey polled members of the 508 Property Council, with the national body’s group executive of policy and advocacy, Matthew Kandelaars, stating that Victoria was “slipping behind the pack”.
Kandelaars attributed the unease to additional regulatory and tax imposts that had been announced or come into play in the state, with the industry executive particularly disappointed by the frequency at which the state’s property framework appeared to be changing.
“As long predicted, a history of almost quarterly tax and regulatory changes has dented long-term confidence, which is a story consistent across domestic and international investors.
“The message is simple: the ambitions in the Victorian government’s Housing Statement rely on stable tax and planning settings, and the confidence of industry to invest,” he said.
It’s notable that Victoria’s sentiment diverged so drastically from the national performance, given that professionals are by no means under the illusion that it’s smooth sailing ahead.
Kandelaars noted that the survey showed “the persistent issue of housing supply and affordability remains a significant concern for industry experts despite confidence rising”.
“Participants have said housing supply and affordability is the main concern for the federal and state governments at historically elevated levels since March 2021. This simply cannot continue,” he said.
According to the report, 40 per cent of participants responded that housing supply and affordability were the major issues facing the federal government, while 41 per cent said the same for state governments.
The positivity appeared to be driven largely by the stable interest rate environment and easier access to debt finance, with many predicting that house prices would rise in response to more buyers in the field.
But many in the industry also acknowledged that price rises would be equally driven by the challenges they hoped to see resolved.
“We see in the survey that high expectations around housing price growth are being driven by a dire undersupply of housing across Australia,” Kandelaars said.
“All levels of government need to back our national housing target, roll out the welcome mat for investment into the property sector, and fix our broken planning systems to deliver the homes we need,” he added.
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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