Property industry confidence has dropped in NSW to the lowest in the nation, after a sustained period of political and policy uncertainty, according to the latest ANZ/Property Council Survey.
The survey found that NSW property industry confidence has dropped by 10 index point from 119 to 109 over the quarter, and has fallen by 32 index points over the 12 months to June 2019.
Acting Property Council NSW executive director William Power said that a score of 100 is considered neutral.
“Lower forward work schedule expectations and staffing level expectations have dragged down construction activity sentiment, contributing to lower results across the board with only the industrial sector on an upward trend.
“Political uncertainly matched with a slowing residential market has had a big effect on industry sentiment, with NSW moving from the most confident to the least in the space of the past 12 months.”
He said that there are many moving parts leading to the current situation.
“A state election and policy and political uncertainty will always have an impact on industry sentiment; however, matched with constrained debt financing, a slowing residential market and potential changes to federal housing policy, we have a perfect storm.”
But Mr Power said that it is time to steady the ship.
“We must see clear leadership and a new focus from the recently elected state government on issues such as planning reform and infrastructure contributions.
“A renewed policy focus is not the only answer to strengthen industry sentiment; however, it sets a strong foundation to encourage further investment and boost potential job growth.”