NSW property confidence has declined for a fourth straight quarter, as property businesses grow warier about whether projects will remain financially viable, according to the latest Procore/Property Council Survey.
The state's confidence index slipped to 84 in September from 89 in June and sits far below the 129 recorded a year earlier. A score below 100 signals that pessimists outnumber optimists across the industry.
The survey comes as NSW prices soften. The state's mean dwelling price fell 2.4%, or $32,700, in the June quarter, the steepest decline of any state, according to Australian Bureau of Statistics (ABS) figures.
The survey follows ABS building approvals data for July, which the Property Council says shows NSW approved 52,776 homes over the past year – well below the more than 80,000 a year now needed to meet the state's National Housing Accord target of 377,000 new homes by July 2029.
Delivery is lagging further down the pipeline. NSW recorded 51,829 commencements and 44,700 completions in the 12 months to March 2026, according to Property Council data.
Property Council NSW executive director Katie Stevenson (pictured) said the ABS figures underline the size of the housing task. In her view, keeping feasibility and delivery front of mind is essential so approved projects can progress to construction.
Stevenson said the state had made headway on planning reform and housing supply. She warned, however, that "getting projects approved is only part of the challenge".
Survey respondents reported weaker expectations for forward work schedules and employment. They also expect softer economic growth and market conditions over the next 12 months, signalling unease about the flow of future projects.
"Industry confidence matters because confidence drives investment," Stevenson said.
She said weaker confidence delays projects and makes housing harder to deliver.
Respondents ranked property taxes and charges as the most pressing issue for state governments to address. Stevenson said governments should avoid adding costs that would further dent investment and slow new supply.
The Property Council gave evidence last week to the NSW parliamentary select committee reviewing the government's Emergency Services Levy reform. Stevenson said the proposed changes could add significantly to costs for commercial and industrial property owners, with flow-on effects for businesses and households.
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