Industry sentiment remains tentatively positive, but there are growing concerns about state economic growth and tight access to debt finance.
Property Council NSW Executive Director Katie Stevenson said the survey results reflect the mixed and uncertain operating environment currently facing the NSW property industry.
"The results show that, despite the ongoing challenging conditions, the property sector in NSW remains resilient. There's strong support for reforms to address housing supply and affordability, and this continues to be the most critical issue for our industry," Ms Stevenson said.
"These results confirm the property industry is feeling the pressure from rising construction taxes and charges, which are stifling development and slowing the delivery of much-needed housing.
"We need the NSW Government to look to the example being set by other states and territories to take a closer look at these barriers if we're going to meet demand and keep our cities growing," she said.
The latest Procore / Property Council Survey for Q3 2024 was conducted between 26 August and 13 September and included responses from over 590 industry professionals. It shows:
- Staffing Levels: NSW companies expect stable staffing growth over the next 12 months, indicating cautious optimism for workforce expansion.
- Forward Work Schedules: Expectations for work schedules remain moderately positive, with respondents anticipating a steady pipeline of projects.
- Residential Property Growth: The outlook for residential property remains positive, with growth in capital values expected over the coming year.
- Industrial Property: Industrial spaces are also expected to perform well, while the office market continues to struggle with declining values.
- State Government Performance: Housing supply and affordability remain the leading concerns for the property industry, followed by property taxes and planning reforms.
