NSW property market confidence lowest in the nation

The latest ANZ/Property Council index, based on a survey of 1,000 professionals in the property industry, has revealed that, overall, property industry confidence for the December quarter 2018 dropped across Australia, from 138 in the September quarter to 126.

NSW property industry confidence was the lowest in the country, dropping by 14 index points from 134 to 120, followed by Victoria (126), Queensland (128), Western Australia (130), the ACT (134) and South Australia (144).

Property Council NSW executive director Jane Fitzgerald attributed the drop to changes in the lending environment and the slowdown in the housing market.

“NSW had gone from the top of the ladder to the bottom in what has been a 27-point turnaround; a combination of tighter lending, a slower residential market and lower economic growth expectations have driven lower sentiment,” Ms Fitzgerald said.

“[Sentiment] can be strengthened through strong leadership from our state government. As we move closer to the 2019 election, we need to see a renewed commitment to long-term planning in Sydney, continued investment in critical infrastructure and sustainable funding for local infrastructure.

“A well-planned, sustainable future for Sydney must be a politically bipartisan issue; this will instil a confidence in the development community and ensure good outcomes for growth planning and infrastructure investment.”

The research also found that expectations regarding capital growth in the housing market also dropped from -5 to -18.

Capital growth expectations were also weakest in NSW, falling from -37 to -60, with Victoria the only other state in negative territory (-35).

Further, the research found that confidence in debt finance availability among property investors slipped deeper into negative territory, from an Australian average of -18 to -24.

The latest data also found that expectations over debt finance availability were weakest in Victoria (-30), followed by NSW (-28), Queensland (-24), the ACT (-19), South Australia (-15) and Western Australia (-13).

National economic growth expectations slipped into negative territory, from 8 to -3.  

The survey also reported a sharp increase in expectations of an interest rate rise, from 12 to 25.

[Related: Approvals could fall by 20% by next year: ANZ Research]