Property

Confidence returns to construction

The Northern Territory was the location to record the highest confidence level, reaching a score of 159.
The Northern Territory was the location to record the highest confidence level, reaching a score of 159.

A STRONG engineering construction industry is fuelling greater confidence in Australia's property sector, according to a new study.

The Property Industry Confidence Survey, released by the Property Council of Australia (PCA) in conjunction with ANZ, saw the property sector's overall outlook rise by six points in the June quarter to 113 - up from 107 points in March.

According to the report's authors Warren Hogan and Paul Braddick, commercial property emerged as one of the strongest building sectors, defying investor uncertainty and demand both domestically and globally to maintain high yields - providing a positive foundation for future growth.

"The Australian commercial property market is very well placed and remains at the early stages of a multi-year cyclical upturn in valuations," they said.

The authors asserted: "Prospects for hotel, office and industrial property remain strong."

According to PCA chief executive Peter Verwer, more than half of the quantifiable lift in sentiment was attributed to three states - Western Australia, the Northern Territory and Queensland.

The only states to decline in confidence were Victoria and Tasmania and most respondents anticipate their own future work levels will increase in the coming year.

The Northern Territory was the location to record the highest confidence level, reaching a score of 159.

A positive economic outlook combined with several large mining construction projects - including the $33 billion Itchys development - providing a significant boost.

Topics:  construction industry hutchinson builders



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