AU Slow growth tipped to hit Australian property sector
Property Here - Thursday, July 11, 2013
EXPECTATIONS of slower economic growth over the next 12 months has put a dampener on sentiment in the property sector.
According to the Property Council of Australia-ANZ Property Industry Confidence Survey, after strong growth in the previous quarter, sentiment in Queensland in the past three months dropped four points to 117.
While still in positive territory, the decline mirrored sentiment among 2700 property and construction professionals surveyed across Australia.
Queensland remains the fourth most positive state.
"While the results show a slight decline in confidence over the past quarter, they represent a levelling out of the surge in confidence we saw in the June survey,'' Property Council Queensland executive director Kathy Mac Dermott said.
"The slight decline in overall confidence is driven by less positive capital growth expectations in most sectors over the next 12 months.''
Hotel capital expectations recorded five point increases in the past two surveys.
Ms Mac Dermott said growth expectations had reached the highest point since the survey's inception.
"This can be attributed to the increased rollout of hotel stock, particularly within the Brisbane CBD facilitated by the council's infrastructure charges moratorium for four- and five-star hotels,'' she said.
ANZ Head of Property Research, Paul Braddick, said: "The recent fall in the Australian dollar is expected to support Queensland's tourism industry, while solid house price growth is likely to provide a boost to the residential property market.''
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