Confidence in Tasmania’s property and construction industry has increased by two points according to new research.
The latest Property Council-ANZ Property Industry Confidence Survey shows that despite a small increase in confidence, Tasmania still is suffering an eighth consecutive period of negative confidence.
Tasmania scored 98 on the survey’s confidence index for the September 2013 quarter, an increase of two points from the June 2013 quarter. A score of 100 is considered neutral.
The survey polled more than 2,700 professionals from the property and construction sector in all states and territories for their forward-looking views.
“This is our eighth survey in the series and while it shows that confidence has bounced back our industry confidence sentiment still remains one of the lowest in the country,” says Property Council Tasmania Executive Director, Mary Massina.
“The key issues of state economic growth and potentially falling staffing numbers across the industry show that the state’s biggest private sector industry is doing it extremely tough, which adversely impacts on Tasmania’s economic growth.”
“The industry needs a systematic structural reform agenda from the Government,” Ms Massina says.
The survey also revealed the four most important barriers to investment in property which were, in order: domestic economic conditions, the state political environment, federal political environment and planning controls.
The industry continues to see the gloomy State economic growth performance and the inability of the State Government to plan and manage growth as impediments.
“The Government must work with the property industry so we ensure employment across the state’s biggest private sector industry and improve the State’s economy,” Ms Massina says.
ANZ Head of Property Research, Paul Braddick, says the survey results reveal marginally downbeat property industry sentiment for Tasmania.
“While this result shows improving confidence on previous quarters, respondents continue to expect weak state economic activity in Tasmania and soft construction growth in office, retail and industrial property.”
“Low confidence in the economic outlook has weighed on capital growth expectations, with the net balance of respondents expecting values to be lower in the coming year across all commercial property sectors except for retirement property.” Mr Braddick says.
Full results available at www.propertyoz.com.au/confidence
Mary Massina Property Council of Australia TAS Executive Director. Paul Braddick ANZ Head of Property Research