New South Wales (NSW) market might need some help back on it’s feet, as the latest Australia and New Zealand Banking (ANZ)/Property Council of Australia survey revealed that property industry confidence in the state has slid to the lowest level recorded in the country.
NSW property industry confidence declined fourteen index points, from 134 to 120, over the quarter and 27 index points over the 12 months to December 2018.
It was noted that lower state and national economic growth expectations, as well as house capital growth expectations, strongly affected the sentiment, leading to lower results across the board.
“NSW had gone from the top of the ladder to the bottom in what has been a 27-point turn around; a combination of tighter lending, a slower residential market and lower economic growth expectations have driven lower sentiment,” Property Council NSW Executive Director Jane Fitzgerald shared.
Fitzgerald warned about the possibility of lowered housing supply as a result.
“We have been building more homes over the past five years to meet growing demand however this must continue; the housing targets outlined in the Greater Sydney Commission’s plans must be met and then we must set more for the next 6 – 10 years,” she said.
Moving forward, the property council believes that sentiment can be built up through proper directions from the State Government – renewed commitments to long term planning in Sydney, continued investment in critical infrastructure, and sustainable funding for local infrastructure are expected as the 2019 election approaches
“A well planned, sustainable future for Sydney must be a politically bi-partisan issue; this will instil a confidence in the development community and ensure good outcomes for growth planning and infrastructure investment.”
In a separate report from National Australia Bank, it was found that confidence among property professionals in New South Wales and Victoria had fallen significantly.