The property industry is more confident in Western Australia than many other parts of the country, but some in the sector are warning that major policy changes could damage this outlook.
The property industry is more confident in Western Australia than many other parts of the country, but some in the sector are warning that major policy changes could damage this outlook.
Numbers from the Property Council of Australia show WA recording an index score of 129, indicating more positive expectations of the quarter ahead than negative.
That was one point lower than the previous quarter, but well down on a score of 140 a year ago.
Only South Australia and the Australian Capital Territory had a higher confidence level, while the national average was 123.
That's the lowest national result since September 2013 and marks a 15-point decline in the past 12 months.
Property Council of Australia chief executive Ken Morrison said the industry was grappling with lenders tightening access to finance and softer work schedules ahead.
“Political leaders must acknowledge these trends and support sensible policies that sustain and stimulate the industry,” he said.
“It’s not the time to be making changes to policies which undermine certainty, confidence or incentives to invest in Australian property.”
WA executive director Sandra Brewer said the state had a strong level of investment and work commitments in the industrial, retail and retirement sectors.
“The lift in growth expectations in the industrial sector is particularly telling as it indicates an increase in demand for our state’s resources,” she said.
“This, combined with more mining investment activity, supports a positive outlook for job and population growth into 2019, further strengthening our overall economy.
“Expectations around economic growth are very positive and there has been an upward shift in sentiment in favour of the state government’s performance.
“This is encouraging, and acknowledgement by our industry of the important steps the state government has made in progressing major city building reforms such as strata reform and the review of the WA planning system.
“The message in these results is that the expected economic recovery in WA is still in its early stages but building momentum.
“It is now critical to continue to press on with important policy initiatives such as Infrastructure WA and Metronet, which will provide industry much needed certainty and lead the way to our state’s recovery.”
Treasurer Josh Frydenberg said the federal opposition’s plans to raise capital gains tax and cut access to negative gearing would increase rents and send home values downward.
Shadow treasurer Chris Bowen said his party had a suite of policies to tackle housing affordability and would ensure confidence in the property sector continued.
