Sentiment is solid for a good start to the year 2020, new research suggests.
The ANZ/Property Council Survey for the March 2020 quarter shows that strong house price expectations over the next 12 months have offset modest confidence in the economy, to deliver an improved outlook for the property industry. National confidence levels have increased by five index points from the previous survey to 123. This is slightly above the average for 2019 of 121 index points, and just three points below the survey historical average. A score above 100 index points indicates net positive sentiment among survey respondents.
Chief Executive of the Property Council of Australia Ken Morrison said that as housing construction is one of the big engines of the Australian economy, it’s encouraging news that sentiment has strengthened. “It also heralds a renewed challenge for policy-makers on housing affordability”, he added. “Strong house prices help underpin confidence and activity, but without matching housing supply, this can lead to runaway price increases and real housing affordability pressure.
“Coming off the back off a sustained drop in new housing approvals and construction starts, we need to be vigilant to ensure housing supply keeps up with demand, including population growth, as the residential market reboots.”
Morrison warned that governments must also be on the front foot in keeping the housing supply lines open, and support affordability through better planning and infrastructure delivery.
Source: EPS Property Search