Confidence In Qld's Property Industry Lowest In Five Years
CC BY 2.0
We are seeing a concerning decline in the Queensland property industry’s confidence.
The latest quarterly ANZ/Property Council Survey reveals confidence has fallen to 118 index points for the March 2019 quarter - the lowest result in five years.
This drop-in confidence places Queensland’s sentiment at the lowest of all Australian jurisdictions. National confidence has also declined by three index points for the quarter.
Chris Mountford, Property Council Queensland Executive Director said the drop in confidence can be attributed to concerns around debt availability.
“Confidence has seen a significant decline over the past two quarters, sliding back by 22 index points. The fall in sentiment can largely be attributed to concerns over a tightening of finance availability.”
“The survey shows that over the past four quarters, concern has been growing about the availability of debt funding. These concerns are now flowing through and dampening expectations about national and state economic growth over the next 12 months.”
“The survey also indicated the industry is less optimistic about forward work schedules and this appears to be dulling their staffing level expectations over the next 12 months compared to previous quarters.
“While overall sentiment remains above 100 index points, which is considered neutral, the rate of decline should sound alarm bells for policy makers.
“Now is the time for government to take action to arrest the decline and foster more optimism through actions that unlock activity and build confidence.
“The Queensland Government’s $70 million commitment to pilot a Build to Rent Scheme in Queensland is a perfect example of the type of action needed.
“But it is unlikely to be enough. Recent tax hikes on property in Queensland remain a major investment and economic handbrake and we continue to urge the Queensland government to take a serious look at their taxation settings,” explained Mr. Mountford.