Property industry confidence remains stable despite concerns over tight levels of supply, according to the Property Council.
The Confidence Index rose two points to 108 in the September quarter, following a 14-point drop in July.
However, housing supply and affordability continue to be major concerns for the industry.
Housing construction expectations for the next 12 months are seven percentage points below the historical index average, while price growth expectations are 20 points above average.
Property Council Group Chief Executive Mike Zorbas said the industry’s expectation to build fewer homes during a housing crisis should raise alarm bells.
“We must build our way out of the housing crisis,” Mr Zorbas said.
“We continue to need governments to come to the table with the right planning and tax settings.”
“Just a few months into the national target window of 1.2 million new homes by 2029 we know we will fall short by a third unless further reforms are adopted.
He said the industry need all parliamentarians to walk the talk on planning and investment boosts for last-mile infrastructure and accelerating purpose-built student accommodation and retirement living communities.
“Equally, Senate amendments proposed by us, the Community Housing Industry Association and National Shelter can deliver 105,000 rental homes over 10 years, including an immediate 1,200 affordable homes,” he said.
Confidence levels in Victoria remain in negative territory despite rising by one point to sit at 91 on the confidence index.
New South Wales rose two points to 107, Queensland climbed seven points to 113 and South Australia increased 11 points to 132, the highest in the country.
Western Australia saw a decrease in confidence levels, falling 19 points to 119.
Likewise, ACT declined 10 points to 104.
General Manager of Procore APAC, Chris Skelton, said the property industry has a crucial role in addressing societal challenges.
“The property industry has an important role to play in solving some of the biggest societal challenges in Australia,” Mr Skelton said.
