The latest ANZ and Property Council Survey for the September 2019 quarter shows that industry confidence has picked up by 13 index points, reversing a year of decline.
Industry confidence improved across all states and territories – except for the ACT.
“Following the federal election, we have had a quadrella of positive policy news which translated into a strong sentiment bounce: certainty on negative gearing and capital gains tax changes, an interest rate cut, APRA’s lending standards review and the proposed first home buyers loan deposit scheme,” said Chief Executive of the Property Council, Ken Morrison.
ANZ Head of Australian Economics, David Plank, also commented that, since April, ANZ had “been flagging that there were emerging signs of stability in the residential property market” – particularly the fact that pace of house prices declines was slowing and that the auction clearance rate was beginning to rise.
“The results of the latest ANZ/Property Council Survey capture this shift, with most parts of the survey showing material improvement. Of particular note is the marked improvement in credit availability”, he said.
However, while Mr Plan says the worst of house price declines are likely “behind us”, he also warns that we should also not expect a shift back to dramatic increases in house prices.
Nevertheless, increased confidence in the property market bodes well for retirement village operators.