Confidence levels for residential construction continues decline

Confidence for residential construction in the December quarter has dipped significantly despite the low rate environment but national confidence levels remain positive recording only a one point drop on the previous quarter, according to the latest findings from the ANZ/Property Council Survey.

The survey which was completed by 2200 respondents across Australia this quarter, found that national confidence levels in the residential property industry were positive at 130 points despite a continual decline over the four quarters for 2015.

While NSW still leads in terms of confidence at 144 points following a two point drop and Victoria remains steady at 134 points, ANZ Co-Head of Australian Economics Cherelle Murphy said these results are “less optimistic than 12 months ago.”

“Those in the residential sector recorded a larger decline in confidence in the last 12 months than any of the commercial property sectors,” she said.

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Meanwhile confidence levels rose in Queensland at 132 points (up 2 points), the Australian Capital Territory at 135 points (up 4 points) and the Northern Territory at 105 points (up 11 points).

Property Council of Australia Chief Executive Ken Morrison said these results should be read closely by policy makers, given that the property industry in Australia accounts for 11.5% of GDP and is the second largest employer.

“The economy has relied on strong housing construction, so any softening would have a broader national impact particularly in terms of jobs and economic activity,” he said.

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