The latest Procore/Property Council sentiment survey has found that property confidence levels continued to be positive in 2025, but respondents were more negative in their views for 2026.
The latest Procore/Property Council survey, which gauges optimism in the property industry, found that confidence tricked down slightly to 123 in the December Quarter survey, slightly down compared to the 125 recorded at the start of 2025. With 100 considered neutral, the mood is still positive.
The industry expects more construction activity in the next 12 months across all asset classes and positive price growth over the same period, despite consensus that the economy will be weaker and there is little expectation of interest rate changes in the next year.
The industry also has a negative outlook on average state government performance and an increasingly negative perception of federal government performance.
Property Council CEO Mike Zorbas said the property industry wants state governments to focus on post-approval backlogs in 2026.
“Governments across the country have outlined their ambitious visions for boosting supply, but there are still huge holdups on post approval green lights and delivery from water and electricity and heritage providers.”
Victoria is the only state where confidence among the property industry is outright negative, said Zorbas.
“Thanks to excessive changing taxes on property projects, Victoria is pulling in the opposite direction of other states keen to welcome institutional investment that will help Australian companies build the industrial, commercial and housing assets our cities need.”
The biggest issue in the property sector is housing supply and affordability, with 35 per cent of respondents ranking it as the most pressing issue for the federal government, with tax reform coming in second at 20 per cent.
On the state level, housing remains the most pressing issue for 32 per cent of respondents, but property taxes and charges come in at a close second at 31 per cent.