Survey Shows Surge In Sentiment

Posted on 12/07/2019  
Survey Shows Surge In Sentiment

Confidence in Australia's property markets has leapt following the Federal Election result and subsequent positive events, as sentiment around credit availability surged and expectations for economic growth turned positive.

Results of the ANZ/Property Council Survey taken between May 28 and June 14 directly reflect the change in sentiment after the May 18 Election and the APRA decision on relaxing assessment criteria for loan applications.

The headline index of confidence made its second-biggest leap in the eight-year history of the survey. The greatest change, however, came in expectations around future availability of credit. Sentiment about whether debt finance would be easier or harder to secure over the next 12 months turned positive for the first time since 2015.

“We’ve seen a very positive pick-up in confidence around the election,” Property Council chief executive Ken Morrison says. “It is around the jump in confidence in the economic environment and also a more positive view about what will be happening to credit levels.”

Award-winning buyers’ agent Miriam Sandkuhler of Property Mavens (pictured) says there’s been a palpable shift in buyer activity and interest in property.

“Competition is starting to present itself, particularly for investment grade properties,” she says. “There are multiple bidders on auction properties and many are now selling above reserve, especially as there’s a shortage of stock. And this renewed buyer activity to leading to a pick-up in the market.”

Sandkuhler says Melbourne agents are actively trying to encourage vendors to bring their properties to market now rather than wait for the spring selling season.

The quarterly survey of sentiment, a leading indicator of activity to come, shows a sense of relief in the country's commercial and residential property industries after the Coalition election victory, putting concerns about changes to negative gearing and capital gains tax breaks to bed. This was followed by the announcement by banking regulator APRA the week after the poll that it would ease its mortgage serviceability rules.

The improving sentiment towards residential property is prompting developers to buy up sites as they position for the next apartment and housing cycles.

After two tough years of falling sales rates and widespread fears of defaults on units, a new wave of developers is getting set with wealthy Chinese-backed groups and local players in the mix.

Savills director residential site sales Stuart Cox says there’s been a “huge” increase in inquiry by developers since the re-election of the Federal Government.

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