NSW Property Confidence Improves In Recent Survey

The recent recovery of the housing market has helped to lift industry confidence in the NSW property market, according to the latest ANZ/Property Council Survey which measures expectations about property industry conditions over the next twelve months.

The Property Industry Confidence Index lifted five points from 118 in the December 2019 quarter to 123 in the March 2020 quarter. A 4.4 per cent increase in home prices in the December quarter has been one of the main drivers of the renewed confidence along with the major investment in large infrastructure projects across NSW.

“The growth of some confidence in the residential market is a positive sign for the state economy, and with better growth expectations across this sector and better availability of finance for housing, we hope to see continued growth in confidence,” said Property Council NSW Executive Director Jane Fitzgerald at the release of the report.

The survey also identified the highest expectations in House Capital Growth in NSW in over four years, driven in part by overall housing approvals and construction forecasts remaining slow across NSW, which will have an impact on housing supply and affordability.

As you can see below, all of the confidence indicators were up except for the State Government performance which was neutral.


Index Overall Context Quarterly Result Quarterly Change Comment
Confidence Index Positive Up 116 to 124 An increase of eight index points
State Economic Growth Positive Up -6.5 to 1.6 Moved from negative to positive
State Govt Performance Neutral Down 2.4 to 0.2 Overall neutral performance, albeit slightly positive
Debt Finance Availability Positive Up 6.4 to 8.5 Third consecutive quarter of expected credit availability
House Capital Growth Positive Up 21.2 to 38.3 Highest expectations in NSW in over four years
Forward Work Schedules Positive Up 35.5 to 39.6 Strong positive expectations
Staffing Levels Positive Up 13.3 to 19.2 An increase of six index points


Source Property Council of Australia/ANZ Property Industry Confidence Survey

Leave a Reply

Your email address will not be published. Required fields are marked *