Property confidence at record high as economic expectations rise
CONFIDENCE has hit record levels in the property sector, with Queensland at its highest level since the mining boom, the latest industry survey has found.
Property confidence in Queensland is at its highest level since 2015.Source:Gold Coast Bulletin
The ANZ/Property Council Survey said there was growing confidence in Queensland amid positive expectations of economic growth in the state led by infrastructure projects such as the Cross River Rail.
Property Council Queensland executive director Chris Mountford said sentiment had jumped by 13 index points since June 2017.
Queensland saw its sentiment index go from 127 points in June last year, to 128 in September, 134 in December, 132 in March and now 139. It was the highest point the sector had reached since March 2015.
Property Council Queensland executive director Chris Mountford is upbeat about jobs and their impact on property. Picture: Mark Calleja.Source:News Corp Australia
ANZ senior economist Daniel Gradwell said there were improvements across all states and territories with price expectations for housing also stabilising everywhere except New South Wales.
“It’s not just the fact that overall confidence rose to the highest level on record; it’s the way that the improvement is being seen across all regions of the country.”
He said the mining areas including Queensland posted further increases in sentiment in the June quarter.
“This provides additional evidence that the decline in the mining sector is well and truly past the worst.”
Mr Mountford expected significant boosts to the Queensland economy off infrastructure.
“The Cross River Rail is expected to create 1,500 jobs annually during the construction phase, which will provide a significant boost to the Queensland economy.
“The opportunities created by additional jobs facilitates interstate migration. Queensland has been expecting increased migration for years, due to our lower property prices and fantastic amenities- now we have the job growth to support it.”
But while it was “a very exciting time for Queensland” Mr Mountford warned that sentiment in the state was still the lowest in the country.
“This shows the industry remains concerned about the direct impacts of the Queensland Government’s land tax increases,” he said.
“The unexpected rises in Land Tax and Additional Foreign Acquirer Duty were announced during the election campaign in late 2017, and are due to take effect from July 1 this year.
“Imposing further taxes on an industry that already pays 53.7 per cent of government taxes, fees and charges, is bound to hurt confidence.”
He renewed a call for the Queensland Government to review the property tax structure in the state.
Nationally, the Australian sentiment index for the June Quarter 2018 was at 143 points, a 5.7 per cent rise nationally.
Source: realestate.com.au
