Confidence in the real estate sector climbed 13 index points, reversing a year of decline, according to the latest ANZ / Property Council survey of the month of September.
The data showed that industry confidence improved in all states and territories – with the exception of ACT – as a result of federal election results . South Australia recorded the largest increase, up 16 index points.
"This strong rally of opinion is motivated by some positive post-election political certainty from Canberra and will be an encouraging sign for the RBA and national policymakers," said Ken Morrison, General Manager of the Property Council. "After the federal elections, we had a quadrille of positive new policies that resulted in a heightened confidence: certainty about negative tax adjustments and taxation of capital gains, a reduction in the interest rate , the revision of APRA loan standards and the first proposed loan deposit scheme. These measures are welcome and have led to much stronger expectations for national economic growth and credit availability. "
However, residential construction will likely continue to decline, affecting employment and the economy.
"The real estate sector is not immune to the challenges that the rest of the economy is facing, and a number of state governments have embarked on a series of tax hikes reducing investment, "said Morrison.
Morrison stated that the Queensland, Victoria and South Australia state budgets were weighing on the real estate sector with arbitrary and poorly designed tax increases – this change would have consequences adverse effects on investment and job creation and could undermine the current turnaround. ]
During the past month, the interest rate cut, the regulator's planned change in the interest rate floor and the removal of uncertainty about the impact of any changes in the interest rate tax policy have improved the feeling towards housing. The increase in bid reconciliation rates in Sydney and Melbourne, which reached its highest level in more than a year, reflects this momentum, according to David Plank, head of the economy at the Australian ANZ.
"The results of the latest ANZ / Property Council survey reflect this change, with most parts of the survey showing a significant improvement," Plank said. "It is worth noting the marked improvement in the availability of credit. This measure has proven to be a reliable indicator of the evolution of housing activity in the past and, if it remains, it suggests better times to come. Certainly, it seems reasonable to say that the worst declines in real estate prices are indeed behind us. This does not mean that we expect housing prices to rise significantly. This is not something we consider desirable, given the even tighter levels of accessibility in Sydney and Melbourne. We also do not think it's likely with the tighter credit policies in place. "
Top suburbs:
Tuart Hill
,
coburg north
,
Kawana
,
Narara
,
Nundah
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