Economic recovery boosts property confidence

By Gerv Tacadena

Property industry confidence continues to improve, almost hitting a record high as the economy continues to improve, according to the latest ANZ/Property Council industry survey.

The confidence in the property market soared to its second-highest level since the survey began at 142 points. This represents an 80-point improvement over the past year.

Ken Morrison, chief executive of the Property Council, said the rising confidence was being driven by record high economic growth expectations.

"While the economy still faces significant challenges, the property industry is clearly buoyed by the speed of our turnaround and the strong demand they are seeing, particularly in the residential and industrial sectors," he said.

Morrison said the government stimulus and business support measures have supported the overall economy and the property industry over the past year.

"With many stimulus measures having now run their course, it is critical that this confidence is backed up by policymakers through measures that will continue to help reactivate our CBDs and upscale our quarantining capacity," he said.

Felicity Emmett, senior economist at ANZ, said the improvement in property sentiment reflects not just the "stellar" economic performance, but also the large pipeline of work for the coming year and the robust outlook for property prices.

"Price expectations are at all-time highs, while the HomeBuilder scheme, along with state and federal government initiatives, has brought forward a large chunk of demand. This has more than offset the impact from low population growth and elevated unemployment," she said.

More Mortgage News