The Australian economy projection in the 2021-2022 Mid-Year Economic and Fiscal Outlook (MYEFO) has presented a positive outcome, especially for the property market as we welcome in the new year.<\/p>\n
Australia is well placed to deal with the challenges of the global pandemic as we achieve some of the best health and economic outcomes to date, and shows the economy is on track for a strong recovery, supported by a strong property industry employing more than any other sector. \u00a0<\/p>\n
This should result in a surge in confidence and economic growth expectations, with the confidence Index rising 12 points nationally in the December quarter, showcased by boosts in the ACT (33 point increase), VIC (25 point increase) and NSW (9 point increase).<\/p>\n
\u201cThese results show the industry\u00a0is clearly optimistic about\u00a0the\u00a0state of the economy and\u00a0commercial and residential property markets in the year ahead, having emerged from\u00a0the challenges COVID-impacted last two years,\u201d\u00a0said Property Council of Australia Chief Executive Ken Morrison. \u00a0<\/p>\n
![\"\"](\"https:\/\/www.apimagazine.com.au\/media\/1001566\/Graph1.jpg\")
<\/p>\n
\u201cThe uplift in expected economic growth from 1.5% in 2020\/21 to 3.75% in 2021\/22 is a major boost to the economy,\u201d said Mr Hayden Groves, President of the Real Estate Institute of Australia.<\/p>\n
\u201cTogether with a drop in the unemployment rate to 4.5% in 2021\/22 and 4.25% in the following year, wages growth of 2.25% and 2.75% in those two years and then accelerating along with a CPI within the RBA\u2019s target will be a positive for the property sector.<\/p>\n
\u201cFor Australian\u2019s considering buying or selling, this MYEFO should give them the encouragement to reach out to your local real estate agent to discuss your options,\u201d Mr Groves said.<\/p>\n
With announcements of the Federal Government\u2019s plan to bring back \u2018normal\u2019 levels of net overseas migration a year earlier than forecast and then run at \u2018catch up levels\u2019 will be vital in supporting the economic recovery and addressing the skills cap currently being recorded.<\/p>\n
\u201cThe reopening of state borders and easing of quarantine restrictions is clearly boosting confidence in the tourism property sector, while the rise in office occupancy has boosted sentiment in the office sector.\u201d Said Felicity Emmett, Senior Economist ANZ.\u00a0<\/p>\n
\u201cIndustrial property remains a clear winner through the pandemic\u00a0though,\u00a0with the shift to e-commerce lifting demand for warehousing and logistics property,\u201d she added.\u00a0\u00a0<\/p>\n
Property Council WA Executive Director, Sandra Brewer, said many businesses were swinging in sentiment between optimism and pessimism as they seek to balance strong demand against staffing challenges and price escalations.<\/p>\n
\u201cConcerning skills shortages are causing real anxiety in the market, with businesses unable to plan growth or forward workflows with any confidence,<\/p>\n
\u201cThe availability of skills and labour has been a critical concern for the property industry for most of 2021 and the problem has become even more acute in the past two to three months. Increasingly we are hearing of projects being at risk or placed on hold,\u201d Ms Brewer said.<\/p>\n
![\"\"](\"https:\/\/www.apimagazine.com.au\/media\/1001566\/Graph2.jpg\")
<\/p>\n
Heading into a federal election sometime this year 2022, the ANZ\/Property Council\u2019s latest survey signalled the sector\u2019s critical issues requiring Federal Government attention.\u00a0\u00a0<\/p>\n
\u201cOur industry\u2019s key leaders are clearly saying\u00a0housing supply and affordability\u00a0is their number one issue,\u00a0followed closely by\u00a0emissions,\u00a0environment\u00a0and energy.\u00a0Planned population growth\u00a0is also of concern, given the industry clearly expects to be requiring\u00a0more\u00a0skilled workers,\u201d Mr Morrison said.\u00a0<\/p>\n
\u201cWhilst all the signs are positive for the property sector, a long-term plan addressing the supply side is still needed.\u2019 Added Mr Groves.<\/p>\n
\u201cNow is the time for Western Australia to be bold and assertive about growing migration. As a State, we have a long history of attracting high-quality expatriates to fill skills gaps,\u201d Ms Brewer said.<\/p>\n
Research conducted by the Property Council WA earlier this year revealed moving West is an attractive idea for many people in other parts of Australia. A survey of 800 Victorian and NSW residents showed 10 per cent of respondents were very or extremely likely to consider moving to WA.<\/p>\n
\u201cNever before has attracting talent to WA been so important, to ensure we continue on a positive economic path,\u201d concluded Ms Brewer.<\/p>\n<\/p><\/div>\n