While confidence in the Australian property sector has increased, the latest Property Council Survey reveals growing property industry concerns about housing affordability and supply.
The survey of Property Council members found industry confidence remained steady, with the Confidence Index increasing one point to 114 index points. A score of 100 in the Confidence Index is considered neutral.
Expectations regarding housing price growth have continued to increase reaching 40.4 points on the index, the highest level since the December quarter of 2021 and well above the historical average of 11.9. A score of 0 is considered neutral.
At the national level, 43 per cent of participants said housing supply and affordability was the most pressing concern for the Australian government, a two per cent increase and closing in on record levels.
On the state level, 46 per cent of respondents selected housing supply and affordability as the foremost critical issue for state governments, marking a three per cent rise. This was followed by planning and regulation reform at 22 per cent.
Property Council of Australia Chief Executive Mike Zorbas said the industry remained broadly optimistic, but inconsistent planning regimes and almost monthly tax hikes around the country were clouding the outlook.
Zorbas said: “While it is pleasing to see consistency of industry confidence, it is clear that housing supply and affordability continues to be a concern for industry experts just as it will remain a decisive issue, alongside immigration, at the next federal election.
“Construction activity for the residential sector is below its historical average, and with the federal government targeting 1.2 million homes by 2029, we simply need to up our game on planning reform and housing delivery.
“We also need to call time on the merry-go-round of rushed taxes from the Victorian and NSW governments, which continue to jeopardise housing supply and industry confidence at a time of consistently high input and investment costs.
“Likewise, the federal government needs to boost skilled migration into the construction industry and our national care economy to support housing and the living sector, especially retirement living.
“To increase our run rate of housing across the board and better deliver government services, high-amenity living choices like retirement communities and purpose-built student accommodation need greater government support in 2024.”
During the December quarter, the survey involving 606 property professionals showed companies continued to maintain confidence in their work schedules and staffing capacities, despite a decline.
Throughout the quarter, forward work expectations remained optimistic in every state and territory, registering an average index score of 25.4 nationwide, below the historical average of 36.4.
Western Australia (50.9) and the ACT (34.2) posted the most robust figures.
Looking ahead, future staffing expectations remained positive across the country with an index score of 8.5, but this is below the historical average of 16.6.
