Property confidence lifts ahead of Federal Election
Trump tariffs - dubbed 'Liberation Day – have resulted in a spike in the belief that further rate cuts would lead to a property market boom.
PROPERTY professionals were more optimistic during March, according to a new survey.
The latest Procore/Property Council Survey showed a significant rise in industry sentiment ahead the Federal Election.
That was even before the Trump tariffs – dubbed ‘Liberation Day – resulted in a spike in the belief that further rate cuts would lead to a property market boom.
The Confidence Index rose nine points to 125 – where a score of 100 is neutral – following a survey of 1,170 Property Council members that took place between March 10 and 25.
The February rate cut by the Reserve Bank appears to have boosted industry confidence.
Though the survey did note ongoing concerns.
Housing supply and affordability emerged as the top issue for the federal government to address, with 40 per cent of respondents nominating it as their key concern.
Tax reform (17 per cent) and infrastructure delivery (15 per cent) followed as the next most important priorities.
The index measuring housing construction expectations jumped to 30.3, its highest level since March 2022.
Meanwhile, expectations for residential house price growth remain elevated, with an index score of 42.7 — far above the long-term average of 14.6.
Property Council Chief Executive Mike Zorbas said the positive outlook is underpinned by both local and global economic shifts.
“The Procore/Property Council sentiment survey shows that in the run-up to ‘Liberation Day’ the industry has been growing in confidence, especially following the RBA’s recent interest rate cut,” Mr Zorbas said.
He emphasised the need for Australia to harness international capital to support its next wave of property development.
“We need global institutional capital to secure the next wave of housing, offices, industrial sheds and community infrastructure,” he said.
“That means streamlining investment pathways — including FIRB, APRA and the ACCC — and ditching the student political theatre of state government taxes on foreign institutional investment.”
At the state level, 36 per cent of respondents said housing and affordability should be governments’ top priority, with property taxes and charges next at 24 per cent.
Office capital growth expectations turned positive for the first time since December 2019, driven by premium demand in Sydney and a tightening market in Queensland.
Only Victoria and the ACT recorded negative office outlooks.
Chris Skelton, General Manager, APAC at Procore, said rising optimism must translate into more housing.
“The fact remains that our country needs more housing to keep up with rising societal trends,” he said.
