Ahead of the Australian federal election on May 3, The Procore/Property Council Survey has indicated a notable increase in optimism within the property sector, with the confidence index climbing to 125 this quarter, up nine points.
This index, measuring industry sentiment where scores above 100 reflect optimism, points to a positive outlook among the 1,170 Property Council members surveyed.
Despite the rise in confidence, the industry remains focused on the need for enhanced housing supply.
Forty per cent of survey respondents identified housing supply and affordability as the top issue for the incoming government, urging stronger action to address these persistent challenges.
Following housing, the focus shifted to tax reform and infrastructure delivery as other critical areas for governmental attention.
Expectations for housing construction have reached their highest point since March 2022, with the index hitting 30.3.
Similarly, the residential price growth expectation index stands at 42.7, far exceeding the long-term average of 14.6, signaling strong market dynamics and continued investor interest.
Mike Zorbas (pictured left), chief executive of the Property Council, emphasised the growing confidence bolstered by recent economic developments and anticipations of further interest rate cuts.
“The Procore/Property Council sentiment survey shows that in the run-up to ‘Liberation Day’ the industry has been growing in confidence, especially following the RBA’s recent interest rate cut,” Zorbas said.
He highlighted the importance of global capital for the future development of housing and infrastructure and called for streamlined investment processes.
At the state level, housing affordability remains a primary concern, with significant attention also directed towards property taxes and charges.
The survey results reflected a robust discussion around the need to simplify regulations and enhance the construction workforce to stimulate national housing supply.
For the first time since the pre-pandemic period in December 2019, there is a positive outlook for office capital growth, although expectations vary by region.
Zorbas noted the growth in demand for premium office spaces and a tightening market in Queensland as the Olympics approach, marking a positive shift in the office sector landscape.
“It is pleasing to see positive confidence in the sector for the first time since before the pandemic,” he said.
Chris Skelton (pictured right), general manager, APAC at Procore, touched on the critical role of technology in advancing the property industry.
“While optimism in Australia’s property industry is growing, the fact remains that our country needs more housing to keep up with rising societal trends,” Skelton said.
He advocated for the integration of data-driven insights to enhance construction efficiency and risk management, ultimately leading to more successful project outcomes.
