The latest ANZ/Property Council Survey has shown NSW property industry confidence has dropped to one of the lowest in the nation.
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NSW property industry confidence has dropped one index point from 120 to 119 over the quarter and has fallen 22 index points over the 12 months to March 2019. A score of 100 is considered neutral.
The survey suggests lower forward work schedule expectations and house capital growth expectations have dragged down sentiment, contributing to lower results across the board.
“Sentiment is down and with a state and federal election just around the corner I don’t think we will see it rebound in the short-term despite stronger results in some sectors,” Property Council NSW executive director Jane Fitzgerald said.
“The industry is facing a lot of uncertainty and change, particularly over the past 12 months.
“We have seen the introduction of Special Infrastructure Contributions, increasing 7.11 levies, the changing of key policies such as the Medium Density Housing Code, the updating of Local Environmental Plans, and the review of approaches to planning in areas such as Ryde – that’s a lot of change for an industry.
“With a flat residential market, there is a real risk that this moving feast of policy changes will have a detrimental effect on economic growth and jobs.”
She said good leadership is needed on issues of planning and managing growth to ensure declining industry sentiment and a flat residential market do not weigh down overall economic growth.
Meanwhile, the November 2018 housing finance figures released by the Australian Bureau of Statistics show that the number of loans for housing continues to decline, according to the Real Estate Institute of Australia.
“Overall the figures for November 2018 show, in trend terms that the number of owner-occupied finance commitments decreased by 0.2 per cent – the 14th consecutive month of decreases,” president Adrian Kelly said.
“If refinancing is excluded, in trend terms, the number of owner-occupied finance commitments decreased by 0.2 per cent – also the 14th consecutive month of decreases and the lowest since October 2014.”
Mr Kelly said the value of investment housing commitments decreased by 1.5 per cent in November, in trend terms, and is currently at 2013 levels.
“The continued decline in housing finance reflects the slowing market, APRA restrictions on investors which went too far for too long, the fallout from the Royal Commission into Banking and concerns about changes to property taxation and its impact should there be a change in government.”