Feeling better already

Australia’s property industry is starting 2013 on a more confident footing, according to new research.

The latest Property Council-ANZ Property Industry Confidence Survey shows the confidence index for the March 2013 quarter increased from 102 to 107, reversing two consecutive periods of decline (a score of 100 is considered neutral).

The survey polled more than 3000 professionals from the property and construction sector in all states and territories for their forward-looking views.

Announcing the findings, Property Council Chief Executive Peter Verwer said that Australia’s property industry has shrugged off mining boom gloom and is entering the new year with improving levels of confidence.

“Pleasingly this improved outlook is led by resource states as well as NSW, with a small increase also in Victoria”, Verwer said.

“However concerns about the broader national economic outlook remain.”

Funding is becoming easier, according to the survey. Perceptions of availability of debt finance have now returned to neutral levels, reflecting a significant improvement in sentiment towards credit availability over the last six months.

The survey also revealed that expectations for house price growth jumped from 101 to 107 on the index, continuing positive prospects for a housing recovery.

ANZ Chief Economist Warren Hogan commented that the recent interest rate reduction has arrested the slide in housing values and this, along with the prospect of further rate cuts, has lifted sentiment for residential price and construction activity.