Australian property sentiment eases in Q3, shows September ANZ-Property Council Survey

The ANZ-Property Council Survey for September indicates that Australia’s business sentiment has alleviated a bit but continues to be elevated as the second half of 2017 begins. Confidence in most regions continue to be higher than a year ago, particularly in the mining states of Western Australia and Queensland.

Despite the moderation in confidence, expectations of staffing levels continue to increase and are currently at the highest levels in the survey’s history, noted ANZ. This underpins other indications that imply continuation of moderate employment growth.

Housing market sentiment has dropped noticeably. The effect of APRA’s regulation seems to be taking hold as firms report greater difficulty in obtaining finance. Housing market is expected to continue to ease through 2017 and 2018. Meanwhile, the retail sector is facing several headwinds, reflected in ongoing declines in sentiment.

“Despite a softer outlook for economic growth, firms continue to report solid demand for labour, suggesting that employment growth will remain positive. The survey also provides further evidence that the mining states have moved past the bottom of their mining boom adjustment”, said ANZ head of Australian Economics David Plank.