Confidence in the New South Wales property market has hit an all-time high, but it is a mixed bag for the rest of the nation.
The latest ANZ
/Property Council Survey revealed that national confidence dipped one point over the previous quarter from 132 to 131 but remains buoyant, as a score of 100 is considered neutral. New South Wales lead the nation, as confidence levels hit an historic high of 149.
The NT and ACT also recorded strong gains up ten and eight points respectively to 132 and 119 on the index. Victoria held steady, dropping only one point to 131, and is on par with the national average. Tasmania came in closely behind Victoria at 130, despite a seven-point drop.
However, the remaining states all recorded falls in confidence with Queensland down 14 points to 125, South Australia down four points to 110 and Western Australia showing the lowest confidence levels of all states and territories, down eight points to 105.
ANZ chief economist Warren Hogan said the property sector continues to provide a green shoot for the broader Australian economic outlook, but easing confidence outside of NSW needs to be watched.
“An optimistic outlook for the property sector is critical to supporting capital growth, employment and property construction in the near-term,” he said.
“The Australian economy continues to face the significant headwind of lower terms of trade and a sharp downturn in mining sector. In addition, a loss of momentum in the economy has been accompanied by deteriorating business confidence and ongoing lacklustre consumer confidence.
“Consequently, easing property sector confidence, particularly outside of NSW, bears close watching in the coming quarters.”