Property sector facing short-term crisis of confidence

The property industry is looking for measures to stimulate activity while it awaits a boost from major infrastructure projects

QUEENSLAND’s property sector is suffering a temporary crisis of confidence, a new study reveals.

The latest industry sentiment survey shows confidence falling for a third consecutive quarter for the first time since it began eight years ago.

“Over the past 12 months, the industry’s expectations ­regarding national and state economic growth have dropped sharply,” Property Council Queensland executive director Chris Mountford said.

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It is at levels not seen since the period after the global financial crisis, but the survey shows the mood is deteriorating even more quickly in the southern states.

Long-term, there was reason for optimism, with a raft of multibillion-dollar projects slated says Property Council Executive Director Chris Mountford. Picture: Mark Calleja

Queensland remains higher than NSW and about even with Victoria, but below the national average. Only the ACT is tracking upwards.

Long-term, there was reason for optimism, with a raft of multibillion-dollar projects slated, Mr Mountford said.

“We have the large-scale structural strengthening with things like Cross River Rail, Brisbane Metro, the second airport runway, new cruise ship terminal and Queen’s Wharf on the horizon,” he said. “There’s absolutely this sense that if you want to be anywhere over the next 10 years, it would be southeast Queensland. But we have to get through the next year or two.”

Queensland remains higher than NSW and about even with Victoria, but below the national average.

The industry was affected by the tightening of finance lending criteria, the impacts of the royal commission into the banks, increases in land tax on lots worth more than $10 million, foreign investors being driven away by stamp duty surcharges and a reduction in the first home buyers grant. The sector is looking to the State Budget, to be handed down in June, to help stimulate development activity in the short-term.

Property sector suffering crisis of confidence

Mr Mountford called for the removal of the 7 per cent Additional Foreign Acquirer Duty on overseas buyers of houses, apartments and residential land to counteract a local downturn. And the Property Council wants to see the first home buyers grant restored to $20,000 from the current $15,000, with an additional $5000 in the regions.