The latest Procore/Property Council Survey reveals a modest uptick in property industry confidence, with the Confidence Index climbing eight points to 116 in the December quarter.
However, this positive shift is tempered by ongoing concerns about housing supply and economic challenges.
For only the fourth time since 2011, construction activity expectations across all asset classes are falling short of long-term historical averages.
Housing construction expectations are particularly concerning, sitting two points below the historical average, while price growth expectations soar 21 points above.
The survey paints a cautious picture of the national economic outlook, with growth expectations in negative territory at -6 on the index.
Housing supply and affordability remain top priorities for industry professionals:
- Nearly 40 per cent of respondents identify housing supply and affordability as the primary federal issue
- 43 per cent prioritise it for state governments
- Economic management (19 per cent) and property taxes and charges (23 per cent) follow as secondary concerns at federal and state levels, respectively
Confidence levels vary significantly across states:
| State/Territory | Confidence Index |
|---|---|
| South Australia | 129 (-3) |
| Queensland | 126 (+13) |
| New South Wales | 120 (+13) |
| Western Australia | 119 (+3) |
| ACT | 105 (+1) |
| Victoria | 95 (+4) |
Victoria remains the only state with a negative confidence score, despite a slight improvement.
Property Council Chief Executive Mike Zorbas highlighted the obstacles facing the industry, stating: “High barriers to construction, high input costs and low market capacity are all showing up in weak construction expectations.”
He emphasised the need for policy reforms to address utility delays, planning duplications, and state property taxes that hinder the housing supply and increase costs.
Chris Skelton, General Manager, APAC at Procore, stressed the importance of technology in addressing these challenges, stating: “Now more than ever, access to data-driven construction management technology is fundamental to help the property industry reduce risk, drive operational efficiency, and build together.”
As the federal election approaches, the Property Council urges all parties to prioritise housing supply solutions.
The industry calls for policies encouraging investment across various housing sectors to meet the ambitious national target of 1.2 million new homes by 2029.
While forward work and staffing level expectations remain positive, they fall below historical averages, indicating ongoing challenges for the property sector in the coming months.
