Confidence in Australia’s property sector remains robust — however, industry leaders are intensifying calls for urgent government action on planning reform, productivity, and investment certainty, according to the latest Procore / Property Council Survey.
The June quarter Confidence Index held steady at 124, just one point below the March result, signalling continued optimism across the sector despite broader economic uncertainty.
An index score of 100 is considered neutral, and the current figure reflects a resilient outlook among the 581 property professionals surveyed.
However, the survey highlights mounting frustration with sluggish planning systems, tax and investment settings that deter both local and international capital, and the pressing need for reforms to accelerate the delivery of housing and infrastructure.
Property Council Chief Executive Mike Zorbas said the results demonstrate the sector’s resilience, but stressed that investors require clearer signals from the government.
“The property industry is holding its nerve, but we need governments to get serious about tax and investment settings that will help Australian businesses attract overseas capital partners for the assets our cities need,” Zorbas said.
“At a time when state governments have run out of money, taxes on foreign investment deter patient institutional investment that we need to build our cities.”
Industry concerns about tax reform surged to 20 per cent since last quarter, marking the highest level since June 2020. Zorbas attributed this to “mounting frustration with outdated tax settings that deter investment and constrain the supply of new homes, offices and industrial property assets”.
He added: “This survey also reminds us that planning reform is the single biggest productivity lever available to governments.
“We must streamline planning and environmental approvals, reduce red tape, and enable faster delivery of housing and infrastructure.”
The survey’s key findings reinforce the urgency of delivery-focused reform, with housing supply and affordability remaining the top concern for both federal and state governments.
Forward work expectations declined in every state except Queensland, signalling potential softening in future project pipelines, particularly in Victoria and the ACT.
While capital growth expectations remain positive in residential, industrial, retirement living, and hotel sectors, sentiment for office and retail assets is mixed.
Debt finance availability and interest rate expectations improved across all jurisdictions except Western Australia, suggesting more favourable investment conditions ahead.
Staffing expectations rose in most markets, reflecting ongoing demand for skilled labour, despite some regional softening.
Government performance confidence remains low, with only South Australia recording positive sentiment federally, and just South Australia and Queensland posting positive scores at the state level.
Zorbas emphasised the need for a nationally coordinated effort to unlock housing and infrastructure supply at scale.
“This is a capital-intensive industry, and Australia will need to continue attracting institutional investment to build the next generation of housing, workplaces and community infrastructure,” he said.
“That means streamlining investment pathways and scrapping counterproductive taxes on foreign capital if we want to stay competitive.”
Andrew Rampton, Industry Transformation Director at Procore APAC, noted the regional nature of confidence: “The survey shows that confidence is regional, with Queensland and South Australia leading the pack.
“This underscores the need to be agile and responsive to local market conditions.
“The divergence highlights the importance of real-time insights and data-driven decision-making to stay ahead in a multi-speed economy.”
The Procore / Property Council Survey, which began in 2011, is now one of Australia’s largest sentiment surveys in the property industry, which supports 1.4 million jobs.
The Q2 2025 survey was conducted online between 3 June and 18 June 2025, drawing responses from property developers, managers, agents, and service providers across the sector.
