Despite the lower levels of housing construction in 2016, the property industry completed the year with a show of confidence from the business world.
This revelation comes as a result of the recent release of the ANZ/Property Council Survey, which questioned over 1,500 business people about their confidence in the property industry – an industry that contributes 11.5 per cent of GDP for Australia and is the second largest employment industry.
Concerns about easing market
Some were concerned that the easing of the property market growths would damage confidence in real estate and reduce the number of home loans. However, the survey has proven these fears to be unfounded, as it revealed that overall industry confidence grew by one point to an overall score of 131.
“In the first survey since the federal leadership change, expectations of national economic growth leapt in every state,” said Property Council of Australia Chief Executive Ken Morrison.
This increased confidence comes in spite of a decrease in construction. However, experts predict that real estate will continue to provide economic improvements.
“Property will still be a growth driver for the economy in 2016, even with an expected easing of housing construction levels,” said Mr Morrison.
“Industry confidence levels remain strong, forward work levels and staffing expectations are positive.”
New South Wales remains confident
In New South Wales, the industry remains more confident than the national average, with the index for the state hitting 142 in the survey.
Industry experts are keeping their eye on residential price growth and associated lending conditions. Suggestions to the New South Wales government from the Property Council included the need to improve the planning system, lower infrastructure charges and abolish stamp duty in order to ensure that housing affordability remains sustainable for local residents.
The next few months of 2016 will be very telling for the property industry as a whole.
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