Forecasts of improved construction activity in the commercial property sector are driving confidence in the Australia economy, the Property Council of Australia believes.
Data from the ANZ/Property Council Survey found the confidence in the property sector has started the year on a high, despite predictions of lower levels of housing construction in 2016.
Property Council of Australia chief executive, Ken Morrison, said the data indicated that the industry would support national economic growth throughout the year.
“Property will still be a growth driver for the economy in 2016, even with an expected easing of housing construction levels,” he said.
“Industry confidence levels remain strong, forward work levels and staffing expectations are positive, and the industry expects non-residential construction to improve.
“Overall industry confidence edged up one point to 131 in the last quarter, with only NSW and ACT easing slightly and Western Australia (WA) dropping again. WA is the only state with confidence in negative territory.
While WA was the only state where the property industry lacked confidence, Property Council WA, executive director, Joe Lenzo, said the state was coming to terms with “new economic climate” and reported “growing confidence in development opportunities around shopping centres and retirement living”.
With WA’s property industry struggling for confidence, Tasmania’s property industry has become the most confident in Australia on the back of positive policies introduced by the State Government, Property Council Tasmania executive director, Brian Wrightman said.
“The shift in sentiment from 142 points last quarter to 158 points in the March 2016 quarter is significant, confirming the view across the industry that it’s a great time to invest in Tasmania,” he said.
