RCP welcomed ANZ’s Senior Economist, Felicity Emmett and a number of senior property representatives to a luncheon at the Hilton in Sydney, hosted by RCP Managing Director, Russell Martoo and Director, Mark Dibben on Thursday 7 July 2022.
The luncheon coincided with the release of the Property Council of Australia’s ANZ/Property Council Survey June quarter results, sponsored by RCP. Felicity presented her expert opinion and provided her observations on the recent decline in sentiment in Australia’s property sector.
The survey was undertaken by industry professionals across all sectors and was conducted post-election.
According to the survey results, national economic growth expectations for the next 12 months decreased dramatically across all states into negative territory. Reflective of this, the national confidence levels fell 19 index points, to 118 points for the quarter.
Consistent with these results the forward work schedule has decreased in sentiment, with the exception of WA recording an increase in sentiment, however all states remain in positive territory. Similarly, staffing level expectations decreased to positive 22 index points.
The negative results reveal a flow on effect from the ramifications of the COVID-19 pandemic. Sentiment across all states, except VIC, revealed the repercussions of the COVID-19 pandemic on businesses will become worse over the next quarter. The results suggest that commercial office will be the most impacted sector, followed by hotels and residential.
Construction activity expectations nationally declined in sentiment across all sectors, except for hotel and retail recording a slight increase in sentiment. The residential sector recorded a sharp decline, with the largest decrease in sentiment compared to the other sectors. Despite the decline in sentiment, all sectors remain in positive territory since June 2020.
The survey recorded an inevitable expectation of an interest rate rise over the next 12 months. Nationally, housing supply and affordability recorded the highest percentage for critical issues for the Federal and State Governments.
Despite the downturn in sentiment, the June results remain optimistic and there’s still confidence within the industry. RCP is experiencing an increase in forward work and construction projects across all sectors.
To view full details of the latest ANZ/PCA survey results, please visit the Property Council of Australia website.