Mining states' property sentiment at a low
PROPERTY sentiment in the resource-rich sunshine state has plummeted to a significant low point and industry leaders expect it to get worse.
All the while, New South Wales and Victoria are riding an improving sentiment boom.
The Property Industry Confidence Survey polled more than 3500 property and construction professionals for their forward-looking views.
The survey, conducted by the Property Council and ANZ, found the increased confidence in non-resource states was dragged down by their mining neighbours.
Queensland suffered one of the biggest decreases in sentiment - 17 points - in the December quarter.
The survey stated Queensland was the only state to shift from positive to negative sentiment.
"The Property Industry Confidence Survey clearly shows a sharp drop in sentiment in resource states, but most respondents did not think the mining boom was over," said Property Council chief executive Peter Verwer.
"When asked whether the mining boom was over, 68% of property professionals said 'no' and only 27% believed their business performance would be reliant on the mining sector."
The survey results stated respondents in Victoria and New South Wales had more faith in their own states than in the national economy.
Nationwide, the drop in sentiment was less severe, moving down the index, from 106 in the September quarter to 102.
For the first time in the survey's history, sentiment in the residential market jumped index scores to become positive.
ANZ chief economist Warren Hogan said survey respondents believed economic growth would weaken over the next 12 months.
"We expect economic activity will remain relatively soft in the short term as Australia transitions to slower real income growth, with the terms of trade returning to pre-crisis levels," Mr Hogan says.
