Surge in Industry Confidence in WA Sets Scene for Economic Bounce Back

Property Council Research

Industry sentiment across the WA property industry increased by 42 basis points in the last 12 months, by far the highest of any state, according to data from the latest ANZ/ Property Council Survey.

“As business confidence in the east appears to be coming off the boil, WA has bucked the trends being the only state to record a positive shift in sentiment over the last quarter. Confidence for WA rose from 129 to 140 index points, bringing us equal to NSW and second only to Victoria,” Property Council WA Executive Director Lino Iacomella said.

Index Overall Context Quarterly Result Index Quarterly Change Comment
Confidence Index POSITIVE UP 129 to 140 Positive and substantial increase
State Economic Growth POSITIVE Up 11 to 40 Positive and substantial increase
State Govt Performance NEGATIVE DOWN -0.3 to -4.1 Negative and declining
Debt Finance Availability POSITIVE UP -3 to 1 Increase and shift from negative to positive
House Capital Growth POSITIVE UP 4 to 21 Positive and substantial increase
Forward Work Schedules POSITIVE STEADY 41 Positive and steady
Staffing Levels POSITIVE DOWN 12 – 11 Positive and marginal decline

“This is a clear sign that industry can sense an economic turnaround. In fact, respondents to the survey predicted a significant increase in State economic growth over the next 12 months, with expectations rising from 11 on the growth index to 40.

“Increases in expected house price growth, retail growth and a steady retirement living sector all contributed to the increase in confidence.

“The only sector to record a decline in sentiment in WA was the hotel sector, which recorded a decline in capital growth expectations.

“There is also a caution in the survey results around expectations for growth in staffing levels in the property industry, which remain the lowest in the country. This suggests that it will take longer to convert greater industry confidence into greater numbers of new jobs.

“WA is poised for an economic turnaround and our state regulators must ensure the correct policies are in place that will allow businesses to innovate and grow employment opportunities in the expected upswing. This means pressing on with planning and strata reform, and the introduction of infrastructure WA,” Mr Iacomella said.

Media contact:  Lino Iacomella  |   E  liacomella@propertycouncil.com.au