Confidence in ACT property sector at a record high

Senior property experts agree 2017 is shaping up as a good year for the ACT with confidence at a record high.

According to the latest ANZ/Property Council survey, the ACT recorded the highest improvement in business sentiment in the nation.

The territory recorded an 11 point increase for the 12 months to March 2017 – on a par with South Australia.

ACT executive director of the Property Council, Adina Cirson, says the property sector is feeling confident and is ready for a big year.

“The ACT results demonstrate very positive signs for the city with forward work schedule expectations currently the highest in Australia. This is teamed with a positive outlook for the territory’s economic and national growth expectations,” she says.

“We have also seen an increase in staffing level expectations, which had dipped in the December quarter, meaning businesses are more confident about locking into labour costs.”

The survey also revealed increasing confidence in residential capital growth expectations; however, the prospect of higher interest rates and availability of debt remain areas of concern.

“There is no doubt the ACT is punching above its weight and it’s great to see the property sector is really holding its own, Cirson says.

“The time is right to enforce the proper policy settings to maintain strong business confidence. We look forward to working with the ACT government to continue to attract investment and activity to Canberra.”

Executive director of Master Builders Association of the ACT, Kirk Coningham, agrees 2017 is shaping up as a positive year for the property sector.

“There’s definitely a sense of confidence in the market, but there are still issues to be faced like land supply and affordability,” he says.

“We also need to ensure the focus is not just on the traditional home, but on credible home alternatives and that includes townhouse and apartment living.”

Coningham believes escalating land prices are contributing to a cultural shift where home buyers at all levels – from first to downsizers – are increasingly considering apartment living as a preferred option.

“The product is becoming increasingly sophisticated and attuned to the needs of modern living and apartment dwelling is a really viable lifestyle alternative,” he says.

“The challenge isn’t about how people want to live, but ensuring balance in the supply and demand equation.”

That, he says, is a conundrum that regulators will need to address and consistently monitor to ensure the ongoing health of the ACT property sector.

What this means for you: Canberra’s property market has benefited from increased confidence but challenges remain.