Confidence in Canberra’s property market is at an all-time high with expectations for capital growth in the housing, retail, office, industrial, retirement and hotel segments all “headed skywards”, according to the Property Council of Australia.
However, according to the results of a new ANZ/Property Council Survey, the uncertainty created by the federal government’s public service relocation threats is “now clearly being shown in the market and is starting to hurt Canberra”.
ACT Executive Director of the Property Council, Adina Cirson, said the ANZ/Property Council December 2017 survey results show confidence is booming in Canberra with strong results across nearly every part of the sector for the upcoming quarter.
Ms Cirson said that according to the survey – a leading business sentiment index – the ACT has jumped 8 points to 146, continuing a steady increase from a low of just 94 points in 2013.
“Not only is our own confidence at an all-time high – it is also outstripping nearly all jurisdictions in Australia ahead of the national average of 141 points and only one point behind the leader, NSW,” Ms Cirson said.
“We have been watching the survey results closely in recent quarters, with some concern that confidence in the market had steadied after significant growth – but this quarter demonstrates we are continuing to feel confident in the level of activity in the property market and expectations continue to grow when looking at capital growth.”
ANZ/Property Council Survey – ACT December quarterly results
Ms Cirson said that, despite a slight drop in staffing level expectations this quarter, the ACT remains ahead of all other jurisdictions.
However, she said that concern continues to grow about the ability of the Federal Government to manage and plan for growth – in contrast to views about the Territory Government.
“I think what we are seeing is the Canberra business sector saying that stability in the local government has returned, with key government appointments finally made,” Ms Cirson said.
“Overall the quarterly results demonstrate that the ACT is in a strong position as we close out the year– making it a great place to invest and do business in.”
The survey canvassed the views of almost 1,400 Australian respondents – including, owners, developers, agents, managers, consultants and government – across all major industry sectors and regions.